Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the income statement of the company included the information shown below:
Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--. Instead, they had merely estimated the inventory.
Required:
Under the gross profit method of inventory estimation, determine the following items to check the accuracy of the employees' estimates.

Question

Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the income statement of the company included the information shown below:  ​
Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--. Instead, they had merely estimated the inventory.
Required:
Under the gross profit method of inventory estimation, determine the following items to check the accuracy of the employees' estimates.

Quizplus · Accepted Answer

The Answer of Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of 20--, the income statement of the company included the information shown below:  ​
Investigation revealed that employees of the company had not taken an actual physical count of the inventory on December 31, 20--. Instead, they had merely estimated the inventory.
Required:
Under the gross profit method of inventory estimation, determine the following items to check the accuracy of the employees' estimates.

Over the Past Several Years, Landmark Supplies Has Averaged a Gross