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Sporting Pro wants to prepare interim financial statements for the first quarter of 2023 but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged 30%. The following information for the year's first quarter is available from its records: January 1 beginning inventory $ 275,260 Purchases 920,200 Purchase returns Transportation-in 12,550 6,400 Sales 1,141,150 Sales returns 9,200 Required: Use the gross profit method to prepare an estimate of the company's March 31 inventory.

Sporting Pro wants to prepare interim financial statements for the first quarter of 2023 but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged 30%. The following information for the year's first quarter is available from its records: January 1 beginning inventory $ 275,260 Purchases 920,200 Purchase returns Transportation-in 12,550 6,400 Sales 1,141,150 Sales returns 9,200 Required: Use the gross profit method to prepare an estimate of the company's March 31 inventory.

FINANCIAL ACCOUNTING
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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Sporting Pro wants to prepare interim financial statements for the first quarter of 2023 but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged 30%. The following information for the year's first quarter is available from its records: January 1 beginning inventory $ 275,260 Purchases 920,200 Purchase returns Transportation-in 12,550 6,400 Sales 1,141,150 Sales returns 9,200 Required: Use the gross profit method to prepare an estimate of the company's March 31 inventory.
Transcribed Image Text:Sporting Pro wants to prepare interim financial statements for the first quarter of 2023 but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged 30%. The following information for the year's first quarter is available from its records: January 1 beginning inventory $ 275,260 Purchases 920,200 Purchase returns Transportation-in 12,550 6,400 Sales 1,141,150 Sales returns 9,200 Required: Use the gross profit method to prepare an estimate of the company's March 31 inventory.
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