1. Use the gross profit method to prepare an estimate of the company's March 31...
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Accounting
1. Use the gross profit method to prepare an estimate of the company's March 31 inventory
Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory During the last five years, the company's gross profit rate has averaged 34% The following information for the year's first quarter is available from its records January 1 beginning inventory Purchases Purchase returns Transportation in Sales Sales returns $295,260 940,200 12,950 6,800 1,181,150 9,400 Required: Use the gross profit method to prepare an estimate of the company's March 31 Inventory SPORTING PRO Estimated Inventory March 31, 2020 Goods available for sale
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