Tennessee Ltd.'s accounting records reported the following information: $$\begin{array} { l l }
\text { Inventory, dan } 1,2020 & \$300,000 \
\text { Purchases during } 2020 & 1,500,000 \
5 a l e = \text { during } 2020 & 2,000,000
\end{array}$$ A physical inventory taken on December 31, 2020, resulted in an ending inventory of $350,000. Tennessee's gross profit on sales has remained constant at 30% in recent years. Tennessee suspects some inventory may have been taken by a new employee. At December 31, 2020, what is the estimated cost of the missing inventory?

Question

Tennessee Ltd.'s accounting records reported the following information: $$\begin{array} { l l } 
\text { Inventory, dan } 1,2020 & \$300,000 \
\text { Purchases during } 2020 & 1,500,000 \
5 a l e = \text { during } 2020 & 2,000,000
\end{array}$$ A physical inventory taken on December 31, 2020, resulted in an ending inventory of $350,000. Tennessee's gross profit on sales has remained constant at 30% in recent years. Tennessee suspects some inventory may have been taken by a new employee. At December 31, 2020, what is the estimated cost of the missing inventory?

Quizplus · Accepted Answer

The Answer of Tennessee Ltd.'s accounting records reported the following information: $$\begin{array} { l l } 
\text { Inventory, dan } 1,2020 & \$300,000 \
\text { Purchases during } 2020 & 1,500,000 \
5 a l e = \text { during } 2020 & 2,000,000
\end{array}$$ A physical inventory taken on December 31, 2020, resulted in an ending inventory of $350,000. Tennessee's gross profit on sales has remained constant at 30% in recent years. Tennessee suspects some inventory may have been taken by a new employee. At December 31, 2020, what is the estimated cost of the missing inventory?

Tennessee Ltd A Physical Inventory Taken on December 31, 2020, Resulted in l