Question 29 Not yet answered Points out of 2.50 P Flag question Keen Company's accounting records indicated the following information: Inventory, beginning-of-year $ 1,800,000 Purchases during the year 9,000,000 Sales during the year 11,400,000 A physical inventory taken on year-end reported an ending inventory of $2,100,000. Keen's gross profit on sales has remained constant at 25% in recent years. Keen suspects some inventory may have been taken by a new employee. At year-end, what is the estimated cost of missing inventory? Select one: O a. $150,000. O b. $600,000. c. $450,000. d. $750,000.

Question 29 Not yet answered Points out of 2.50 P Flag question Keen Company's accounting records indicated the following information: Inventory, beginning-of-year $ 1,800,000 Purchases during the year 9,000,000 Sales during the year 11,400,000 A physical inventory taken on year-end reported an ending inventory of $2,100,000. Keen's gross profit on sales has remained constant at 25% in recent years. Keen suspects some inventory may have been taken by a new employee. At year-end, what is the estimated cost of missing inventory? Select one: O a. $150,000. O b. $600,000. c. $450,000. d. $750,000.

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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