Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1   $ 158,100 Purchases (gross)   665,400 Freight-in   29,700 Sales revenue   937,900 Sales returns   69,300 Purchase discounts   12,900   Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Inventory, May 1   $ 158,100
Purchases (gross)   665,400
Freight-in   29,700
Sales revenue   937,900
Sales returns   69,300
Purchase discounts   12,900

 

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.

The estimated inventory at May 31
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