If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data? $\begin{array}{lll}
\text { Sep. } 1 & \text { Merchandise inventory } & \$ 125,000 \
\text { Sep. } 1-30 & \text { Purchases(net) } & 300,000 \
\text { Sep. } 1-30 & \text { Sales (net) } & 150,000
\end{array}$

Question

Quizplus · Accepted Answer

The estimated cost of the merchandise inventory on September 30 is $192,500. This is calculated by taking the net purchases for the month ($300,000) and adding the beginning inventory ($125,000), and then subtracting the net sales for the month ($150,000). The resulting figure is the estimated cost of the merchandise inventory on September 30.

If the Estimated Rate of Gross Profit Is 30%, What