Ayayai 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 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts (a) $163,800 651,200 29,500 925,900 66,700 11,300 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
Ayayai 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 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts (a) $163,800 651,200 29,500 925,900 66,700 11,300 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ayayai 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
Purchases (gross)
Freight-in
Sales revenue
Sales returns
Purchase discounts
(a)
$163,800
651,200
29,500
925,900
66,700
11,300
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
The estimated inventory at May 31 $
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