Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 156,000 Purchases (gross)...


Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information<br>for the month of May.<br>Inventory, May 1<br>$ 156,000<br>Purchases (gross)<br>663,700<br>Freight-in<br>31,500<br>Sales revenue<br>1,061,800<br>Sales returns<br>72,100<br>Purchase discounts<br>13,100<br>(a)<br>Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.<br>The estimated inventory at May 31<br>%24<br>eTextbook and Media<br>

Extracted text: Ivanhoe Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 156,000 Purchases (gross) 663,700 Freight-in 31,500 Sales revenue 1,061,800 Sales returns 72,100 Purchase discounts 13,100 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 %24 eTextbook and Media

Jun 01, 2022
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