Question 3Seasons Limited would like to estimate the month end inventory by using the sales revenueearned during the month. It has the following sales and purchases information for themonth of September to consider.Inventory, 1 September$500,000Purchase1,300,000Freight-in50,0002,100,00040,000SalesSales returnsPurchase discounts90,0003Required:(a) Compute the estimated inventory at 30 September, assuming thegross profit on selling price is 30%.(b) Compute the estimated inventory at 30 September, assuming thepercentage mark up on cost is 33.33%.

Name: Question 3Seasons Limited would like to estimate the month end invent
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Description: Question 3Seasons Limited would like to estimate the month end inventory by using the sales revenueearned during the month. It has the following sales and purchases information for themonth of September to consider.Inventory, 1 September$500,000Purc

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Seasons Limited would like to estimate the month end inventory by using the sales revenue earned during the month. It has the following sales and purchases information for the month of September to consider. Inventory, 1 September $500,000 1,300,000 50,000 Purchase Freight-in Sales 2,100,000 Sales returns 40,000 Purchase discounts 90,000

Seasons Limited would like to estimate the month end inventory by using the sales revenue earned during the month. It has the following sales and purchases information for the month of September to consider. Inventory, 1 September $500,000 1,300,000 50,000 Purchase Freight-in Sales 2,100,000 Sales returns 40,000 Purchase discounts 90,000

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BE: Perpetual inventory using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as...

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