Sheridan 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 $170,600 Purchases (gross) 689,500 Freight-in 29,300 Sales revenue 975,600 Sales returns 75,600 Purchase discounts 11,000 (a) Your answer has been saved. See score details after the due date. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. (b) The estimated inventory at May 31 $ 203400 Attempts: 1 of 1 used Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to O decimal places, e.g. 6,225.) The estimated inventory at May 31
Sheridan 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 $170,600 Purchases (gross) 689,500 Freight-in 29,300 Sales revenue 975,600 Sales returns 75,600 Purchase discounts 11,000 (a) Your answer has been saved. See score details after the due date. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. (b) The estimated inventory at May 31 $ 203400 Attempts: 1 of 1 used Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to O decimal places, e.g. 6,225.) The estimated inventory at May 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheridan 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
$170,600
Purchases (gross)
689,500
Freight-in
29,300
Sales revenue
975,600
Sales returns
75,600
Purchase discounts
11,000
(a)
Your answer has been saved. See score details after the due date.
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
(b)
The estimated inventory at May 31
$
203400
Attempts: 1 of 1 used
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal
places, e.g. 78.74% and final answer to O decimal places, e.g. 6,225.)
The estimated inventory at May 31
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