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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This note was uploaded on 02/08/2011 for the course ACCT 2101 taught by Professor Turner during the Spring '08 term at Georgia Institute of Technology.

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