Question

Exercise 9-14

Nash 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		$ 145,400
Purchases (gross)		658,600
Freight-in		27,700
Sales revenue		990,600
Sales returns		76,300
Purchase discounts		11,900

	Your answer is incorrect. Try again.

Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.

The estimated inventory at May 31

$enter the dollar amount of the estimated inventory at May 31

LINK TO TEXT

LINK TO VIDEO

	Your answer is incorrect. Try again.

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 0 decimal places, e.g. 6,225.)

The estimated inventory at May 31

$enter the dollar amount of the estimated inventory at May 31

Answer 1