Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sales. Assume further that the company's inventory records for its stores reveal the following data: $510,000 Inventory: June 1, 2023 Transactions during June: Purchases Sales Required Requirement 1. Estimate the June 30, 2023, inventory using the gross margin method. Cost of goods sold $4,880,000 $8,435,000 Estimated cost of ending inventory Requirement 2. Prepare the June Income statement through gross margin for Dollar Forest Store. Cost of goods sold Required 1. Estimate the June 30, 2023, inventory using the gross margin method. 2. Prepare the June income statement through gross margin for Dollar Forest Store. Print Done

Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sales. Assume further that the company's inventory records for its stores reveal the following data: $510,000 Inventory: June 1, 2023 Transactions during June: Purchases Sales Required Requirement 1. Estimate the June 30, 2023, inventory using the gross margin method. Cost of goods sold $4,880,000 $8,435,000 Estimated cost of ending inventory Requirement 2. Prepare the June Income statement through gross margin for Dollar Forest Store. Cost of goods sold Required 1. Estimate the June 30, 2023, inventory using the gross margin method. 2. Prepare the June income statement through gross margin for Dollar Forest Store. Print Done

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Description: Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sal

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 3AP

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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
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Jessie Stores uses the periodic system of calculating inventory. The following information is available for December of the current year when Jessie sold 500 units of inventory. Using the FIFO method, calculate Jessies inventory on December 31 and its cost of goods sold for December.
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At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
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