Sporting Pro wants to prepare Interim financlal statements for the first quarter of 2020 but would like to avoid making a physical countof inventory. During the last five years, the company's gross profit rate has averaged 47%. The following information for the year's firstquarter is available from Its records:January 1 beginning inventory350, 260995, 20014,8507,9001,291,1509,950PurchasesPurchase returnsTransportation-inSalesSales returnsRequlred:Use the gross profit method to prepare an estimate of the company's March 31 Inventory.SPORTING PROEstimated InventoryMarch 31, 2020Goods available for sale:Goods available for saleEstimated cost of goods sold:

Estimated cost of goods sold = Net sales - gross profit = $1281200-1281200*47% = $679,036

Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physlcal count of inventory. During the last five years, the company's gross profit rate has averaged 47%. The following Information for the year's first quarter is avallable from Its records: January 1 beginning inventory Purchases $ 350, 260 995, 200 Purchase returns 14,ese Transportation-in 7,900 1,291,15e 9,95e Sales Sales returns Required: Use the gross profit method to prepare an estimate of the company's March 31 inventory. SPORTING PRO Estimated Inventory March 31, 2020 Goods available for sale: Goods available for sale Estimated cost of goods sold:

Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physlcal count of inventory. During the last five years, the company's gross profit rate has averaged 47%. The following Information for the year's first quarter is avallable from Its records: January 1 beginning inventory Purchases $ 350, 260 995, 200 Purchase returns 14,ese Transportation-in 7,900 1,291,15e 9,95e Sales Sales returns Required: Use the gross profit method to prepare an estimate of the company's March 31 inventory. SPORTING PRO Estimated Inventory March 31, 2020 Goods available for sale: Goods available for sale Estimated cost of goods sold:

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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