Daphne Company used the gross profit method to estimate its ending inventory of $800, which was an increase of $200 from the beginning inventory for the month.Gross purchases for the month amounted to $6, 000 and sales were $7, 250, made at a gross profit of 25% on cost.Calculate the amount of purchase returns made by Daphne for the month.

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The Answer of Daphne Company used the gross profit method to estimate its ending inventory of $800, which was an increase of $200 from the beginning inventory for the month.Gross purchases for the month amounted to $6, 000 and sales were $7, 250, made at a gross profit of 25% on cost.Calculate the amount of purchase returns made by Daphne for the month.

Daphne Company Used the Gross Profit Method to Estimate Its