ABC, Inc. began the year with $250,000 of inventory and purchased $1,500,000 of goods during the year. Sales for the year were $2,750,000 and the gross profit percentage is 45%. Compute the company's estimated cost of ending inventory by using the gross profit method. How can this estimate be checked for accuracy?

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The Answer of ABC, Inc. began the year with $250,000 of inventory and purchased $1,500,000 of goods during the year. Sales for the year were $2,750,000 and the gross profit percentage is 45%. Compute the company's estimated cost of ending inventory by using the gross profit method. How can this estimate be checked for accuracy?

ABC, Inc Began the Year with $250,000 of Inventory and Purchased