Greer Company's accounting records indicated the following information: A physical inventory taken on December 31, 2010, resulted in an ending inventory of $700,000.Greer's gross profit on sales has remained constant at 30% in recent years.Greer suspects some inventory may have been taken by a new employee.At December
31, 2010, what is the estimated cost of missing inventory?
A)$100,000.
B)$150,000.
C)$200,000.
D)$800,000.

Question

Greer Company's accounting records indicated the following information:  A physical inventory taken on December 31, 2010, resulted in an ending inventory of $700,000.Greer's gross profit on sales has remained constant at 30% in recent years.Greer suspects some inventory may have been taken by a new employee.At December
31, 2010, what is the estimated cost of missing inventory?
A)$100,000. 
B)$150,000. 
C)$200,000. 
D)$800,000.

Quizplus · Accepted Answer

The Answer of Greer Company's accounting records indicated the following information:  A physical inventory taken on December 31, 2010, resulted in an ending inventory of $700,000.Greer's gross profit on sales has remained constant at 30% in recent years.Greer suspects some inventory may have been taken by a new employee.At December
31, 2010, what is the estimated cost of missing inventory?
A)$100,000. 
B)$150,000. 
C)$200,000. 
D)$800,000.

Greer Company's Accounting Records Indicated the Following Information: a Physical