Exercise 9-14 (Part Level Submission) Wildhorse Company uses the gross profit me

Question

Exercise 9-14 (Part Level Submission) Wildhorse 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 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts 169,600 677,700 30,300 957,200 74,300 13,100 (a) XYour 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 664600 Click if you would like to Show Work for this question: Sho LINK TO TEXT VIDEO: SIMILAR EXERCISE

Explanation / Answer

Particulars Amt Opening Stock 169600 Add: Purchases 677700 Add: Freight In 30300 Less: Purchase Discounts 13100 694900 Goods Available for Sale 864500 Less: Sales 957200 Less: Sales Returns 74300 Net Sales 882900 Cost of Goods Sold (882900 x 75%) 662175 Income from operations 202325

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