Davis Company's accounting records indicated the following information:

A physical inventory taken on December 31, 2011, revealed actual ending inventory at cost was $1,150,000. Davis's gross profit on sales has regularly been about 25 percent in recent years. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2011?

Question

Davis Company's accounting records indicated the following information:

A physical inventory taken on December 31, 2011, revealed actual ending inventory at cost was $1,150,000. Davis's gross profit on sales has regularly been about 25 percent in recent years. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2011?

Quizplus · Accepted Answer

The Answer of Davis Company's accounting records indicated the following information:

A physical inventory taken on December 31, 2011, revealed actual ending inventory at cost was $1,150,000. Davis's gross profit on sales has regularly been about 25 percent in recent years. The company believes some inventory may have been stolen during the year. What is the estimated amount of missing inventory at December 31, 2011?

Davis Company's Accounting Records Indicated the Following Information