In: Accounting
Exercise 9-14
Crane Company uses the gross profit method to estimate inventory
for monthly reporting purposes. Presented below is information for
the month of May.
Inventory, May 1 $ 162,000
Purchases (gross) 637,500
Freight-in 28,600
Sales revenue 1,031,100
Sales returns 69,600
Purchase discounts 11,500
Incorrect answer. Your answer is incorrect. Try
again.
Compute the estimated inventory at May 31, assuming that the gross
profit is 20% of net sales.
The estimated inventory at May 31
$Entry field with incorrect answer
239775
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Incorrect answer. Your answer is incorrect. Try
again.
Compute the estimated inventory at May 31, assuming that the gross
profit is 20% of cost. (Round percentage of sales to 2 decimal
places, e.g. 78.74% and final answer to 0 decimal places, e.g.
6,225.)
The estimated inventory at May 31
$Entry field with incorrect answer
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