Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory,...
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Estimating Inventory Loss Using Gross Profit Method Dart Company's accounting records reveal the following. Inventory, January 1, 2020 $500,000 Purchases during 2020 2,500,000 Sales during 2020 3,200,000 A physical inventory taken on December 31, 2020, shows an ending inventory of $575,000. Dart's gross margin on sales has remained constant at 25% in recent years. Dart suspects some inventory theft by a new employee. At December 31, 2020, compute an estimate of the cost of missing inventory. $ Check
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