When preparing its quarterly financial statements, Patterson Co. uses the gross margin method to estimate ending inventory. The following information is available for the 1^st quarter of 2013: What was Patterson's estimated inventory on March 31, 2013? A)$412,500 B)$577,500 C)$472,500 D)$517,500

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$1,050,000 x (1 - 0.45) = $577,500 estimated cost of goods sold; $220,000 beg. inventory + $770,000 purchases = $990,000 goods available for sale; $990,000 - $577,500 cost of goods sold = $412,500 estimated ending inventory

When Preparing Its Quarterly Financial Statements, Patterson Co