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Alanood Company wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a phusical count of inventory. During the last five years the compan's gross profit rate averaged 36%
The following information for the years first quarter is avalable from its records:
January 1 beginning inventory $ 150,130
Purachses $ 472,600
Purachse returns $ 6,525
Transportation in $ 3,450
Sales $ 595,575
Sales returns $ 4,725
Required:
Problem 1: Use the gross profit method to estimate of the company's March 31 inventory.
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