3 sandhill company a wholesaler budgeted the

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.3.SandhillCompany, a wholesaler, budgeted the following sales for the indicated months:JuneJulyAugustSales on account\$2460000\$2520000\$2610000Cash sales246000276000366000Total sales\$2706000\$2796000\$2976000All merchandise is marked up to sell at its invoice cost plus20%. Merchandise inventories at the beginning ofeach month are at30% of that month's projected cost of goods sold.The cost of goods sold for the month of June is anticipated to be\$2164800.\$2255000.\$1894200.\$2081538.Solution:(1 + 0.20)C = \$2706000; C =\$2255000.
4.WildhorseCompany had a gross profit of \$605000, total purchases of \$822000, and an ending inventoryof \$468000in itsfirstyear of operations as a retailer.Wildhorse’s sales in its first year must have been\$1427000..
5.Sheridan, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financialstatement. The rate of markup on cost is20%. The following account balances are available:Inventory, March 1\$543000Purchases423000Purchase returns13000Sales during March729000The estimate of the cost of inventory at March 31 would be
6. On January 1, 2020, the merchandise inventory ofSandhill, Inc. was \$1400000. During2020Sandhillpurchased \$2804000of merchandise and recorded sales of \$3600000. The gross profit rate onthese sales was25%. What is the merchandise inventory ofSandhillat December 31, 2020?

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