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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![XYZ Company prepares monthly interim financial statements. The
company needs to estimate the month-end inventories because inventory
is counted only every month-end. All sales are made on account and the
mark up on cost is 25%. The following information is made available: (Refer
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42cec4c8-a8d1-4de3-95cb-40874466dac6%2F120344f9-974e-4280-b9ff-8616a654ea95%2Fzs7g5xwy_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ Company prepares monthly interim financial statements. The
company needs to estimate the month-end inventories because inventory
is counted only every month-end. All sales are made on account and the
mark up on cost is 25%. The following information is made available: (Refer
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
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