Compute the Company's gross profit percentage using the following accounts -Inventory, December 31, 2013 Sales -Gross $195,000 550,000 200,000 15,000 10,000 5,000 Cost of sales Sales returns Sales allowances Sales discounts estimated 58% А. 60.9% В. 61.5% C. 39.4% D.

Compute the Company's gross profit percentage using the following accounts -Inventory, December 31, 2013 Sales -Gross $195,000 550,000 200,000 15,000 10,000 5,000 Cost of sales Sales returns Sales allowances Sales discounts estimated 58% А. 60.9% В. 61.5% C. 39.4% D.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Question

I see that the answer is 61.5%. But I want to know is how do I solve for the answer, what is it that I need to do.

Compute the Company's gross profit percentage using the following accounts
-Inventory, December 31, 2013
Sales -Gross
$195,000
550,000
200,000
15,000
10,000
5,000
Cost of sales
Sales returns
Sales allowances
Sales discounts estimated
58%
А.
60.9%
В.
61.5%
C.
39.4%
D.

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