a.
Concept Introduction:
Gross profit method: This method estimates the ending inventory balance, in which companies perform a physical count of inventory at the end of the fiscal year. This method estimates the inventory value by using the historical percentage of gross profit with the information of net sales and the cost of goods available for sale during the current period.
The estimated cost of goods sold, gross profit, and ending inventory for the recent three years.
b.
Concept Introduction:
Gross profit method: This method estimates the ending inventory balance, in which companies perform a physical count of inventory at the end of the fiscal year. This method estimates the inventory value by using the historical percentage of gross profit with the information of net sales and the cost of goods available for sale during the current period.
The estimated cost of goods sold, gross profit, and ending inventory for the recent two years.
c.
Concept Introduction:
Gross profit method: This method estimates the ending inventory balance, in which companies perform a physical count of inventory at the end of the fiscal year. This method estimates the inventory value by using the historical percentage of gross profit with the information of net sales and the cost of goods available for sale during the current period.
The difference based on 2-year and 3-year historical gross profit percentages.
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INTERMEDIATE ACCOUNTING-MYLAB W/ETEXT
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