Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Otingo's gross profit rate averages 35%. The following information for the first quarter is available from its records. Beginning inventory, January 1 $ 802,880 Cost of goods purchased 2,209,636 Sales . 3,760,260 Sales returns 79,300 Required Use the gross profit method to estimate the company's first-quarter ending inventory.

Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Otingo's gross profit rate averages 35%. The following information for the first quarter is available from its records. Beginning inventory, January 1 $ 802,880 Cost of goods purchased 2,209,636 Sales . 3,760,260 Sales returns 79,300 Required Use the gross profit method to estimate the company's first-quarter ending inventory.

Name: Otingo Equipment Co. wants to prepare interim financial statements fo
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Description: Otingo Equipment Co. wants to prepare interim financial statements for the first quarter. The companywishes to avoid making a physical count of inventory. Otingo's gross profit rate averages 35%. The followinginformation for the first quarter is ava

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...

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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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