Armedio Enterprises lost its entire inventory in a hurricane that occurred on March 31, 2014.
Over the past five years, gross profit has averaged 30% of net sales. The company's records reveal the following data for the month of March:
Beginning Inventory $42,600, Net Purchases $259,900, Sales $430,500, and
Sales Returns and Allowances $12,300
Estimate the inventory for the end of March using the gross profit method.

Question

Quizplus · Accepted Answer

The Answer of Armedio Enterprises lost its entire inventory in a hurricane that occurred on March 31, 2014.
Over the past five years, gross profit has averaged 30% of net sales. The company's records reveal the following data for the month of March:
Beginning Inventory $42,600, Net Purchases $259,900, Sales $430,500, and
Sales Returns and Allowances $12,300
Estimate the inventory for the end of March using the gross profit method.

Armedio Enterprises Lost Its Entire Inventory in a Hurricane That