On December 31,a company needed to estimate its ending inventory to prepare its annual financial statements.The following information is currently available: Inventory as of January 1: $120,500
Net sales for the year: $400,000
Net purchases for the year: $270,500
This company typically achieves a gross profit ratio of 15%.Ending Inventory under the gross profit method would be:
A)$102,425.
B)$10,425.
C)$9,000.
D)$51,000.
E)$51,425.

Question

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The Answer of On December 31,a company needed to estimate its ending inventory to prepare its annual financial statements.The following information is currently available: Inventory as of January 1: $120,500
Net sales for the year: $400,000
Net purchases for the year: $270,500
This company typically achieves a gross profit ratio of 15%.Ending Inventory under the gross profit method would be:
A)$102,425.
B)$10,425.
C)$9,000.
D)$51,000.
E)$51,425.

On December 31,a Company Needed to Estimate Its Ending Inventory