Blossom Co. prepares monthly income statements. Inventory is counted only at year end; thus, month-end...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Blossom Co. prepares monthly income statements. Inventory is counted only at year end; thus, month-end inventories must be estimated. All sales are made on account. The rate of mark-up on cost is 25%. The following information relates to the month of May.
Accounts receivable, May 1
$21,500
Accounts receivable, May 31
16,500
Collections of accounts during May
94,000
Inventory, May 1
48,000
Purchases during May
65,000
Calculate the estimated cost of the inventory on May 31
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
