The following information is available for November 2018, for Golden Company.Beginning inventory$ 80,000Purchases300,000Purchase return20,000Sales500,000Sales discount50,000Gross profit percentage of salesUsing the gross profit method, the estimated ending inventory is:25%OA.$50,000OB.$22,500OC.$30,000OD.$85,000

Gross profit=Net sale×Profit %=$500,000-$50,000×25%=$112,500

The following information is available for November 2018, for Golden Company. Beginning inventory S 80,000 Purchases 300,000 Purchase retun 20,000 Sales 500,000 Sales discount 50,000 Gross profit percentage of sales 25% Using the gross profit method, the estimated ending inventory is: OA. $50,000 OB. $22,500 OC $30,000 OD. $85,000

The following information is available for November 2018, for Golden Company. Beginning inventory S 80,000 Purchases 300,000 Purchase retun 20,000 Sales 500,000 Sales discount 50,000 Gross profit percentage of sales 25% Using the gross profit method, the estimated ending inventory is: OA. $50,000 OB. $22,500 OC $30,000 OD. $85,000

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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