Ending inventory by the gross profit method

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Reference no: EM13132270

A company that operated with a 30% average gross profit margin for a number of years had $100,000 of sales during the first quarter of this year. If it began the quarter with an $18,000 inventory at cost and purchased $72,000 of merchandise during the quarter, its estimated ending inventory by the gross profit method is:

A) $18,000

B) $20,000

C) $21,000

D) $30,000

Reference no: EM13132270

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