XYZ Company prepares monthly interim financial statements. Thecompany needs to estimate the month-end inventories because inventoryis counted only every month-end. All sales are made on account and themark up on cost is 25%. The following information is made available: (Referto image) What is the estimated cost of inventory on June 30? *Accounts receivable, June 1Accounts receivable, June 30625,000.00775,000.00Collections made in June2,150,000.00Inventory, June 1Purchases during June1,280,000.001,800,000.00

Sales during June = Collections made in June + Ending accounts receivable - beginning accounts…

is counted only every month-end. All sales are made on account and mark up on cost is 25%. The following information is made available: to image) What is the estimated cost of inventory on June 30? * Accounts receivable, June 1 Accounts receivable, June 30 625,000.00 775,000.00 Collections made in June 2,150,000.00 Inventory, June 1 Purchases during June 1,280,000.00 1.800,000.00

is counted only every month-end. All sales are made on account and mark up on cost is 25%. The following information is made available: to image) What is the estimated cost of inventory on June 30? * Accounts receivable, June 1 Accounts receivable, June 30 625,000.00 775,000.00 Collections made in June 2,150,000.00 Inventory, June 1 Purchases during June 1,280,000.00 1.800,000.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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