J Traders has sales of $215,000 and the cost of goods available for sale of $183,000. If the gross profit rate is 31.5%, what is the estimated cost of the ending inventory under the gross profit method?

J Traders has sales of $215,000 and the cost of goods available for sale of $183,000. If the gross profit rate is 31.5%, what is the estimated cost of the ending inventory under the gross profit method?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Question

Please explain the solution to this general accounting problem with accurate principles.

J Traders has sales of $215,000 and the
cost of goods available for sale of
$183,000. If the gross profit rate is
31.5%, what is the estimated cost of
the ending inventory under the gross
profit method?

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