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Class+Exercise+from+2-27-09+_1_

# Class+Exercise+from+2-27-09+_1_ - Sales \$ 7,748,000 Sales...

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ACCT 2101 CLASS EXERCISE DATE _____________ Topic: Gross Margin Estimation Name _____________________________ Section ______ The sales and cost of goods sold for Phelps Company for the past five years were as follows: Year Sales (net) Cost of Goods sold Gross Margin GM % 2003 \$ 9,984,960 \$ 6,240,600 \$ 3,744,360 2004 10,794,240 6,746,400 4,047,840 2005 12,346,560 7,716,600 4,629,960 2006 11,926,080 7,272,000 4,654,080 2007 12,747,840 7,920,000 4,827,840 The following information is for the seven months ended July 31, 2008:
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Unformatted text preview: Sales \$ 7,748,000 Sales returns 173,760 Purchases 4,588,800 Purchase returns 28,800 Merchandise inventory, 1/1/08 948,000 • To secure a loan, Phelps Company has been asked to present current financial statements. However, the company does not wish to take a complete physical inventory as of July 31, 2008. REQUIRED: From the data given, compute the estimated inventory as of July 31, 2008....
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