Bonita Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented...
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Accounting
Bonita Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Compute ending inventory assuming gross profit is 25% of sales.
| Inventory, May 1 | $ 165,300 | |
| Purchases (gross) | 619,800 | |
| Freight-in | 30,100 | |
| Sales revenue | 940,00 | |
| Sales returns | 68,700 | |
| Purchase discounts | 11,600 |
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