Solution-Determine the estimated cost of goods sold for ten

Determine the estimated cost of goods sold for ten months

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Question - On Oct. 31, 2019, a flood at ALEM Company's only warehouse caused severe damage to its entire inventory. Based on recent history, ALEM has a gross profit of 25% of sales. The following information is available from ALEM's records for ten months ended Oct. 31, 2019:

Inventory, Jan. 1 520,000

Purchases 4,120,000

Purchase returns 60,000

Sales 5,600,000

Sales returns 400,000

Sales allowances 100,000

A physical inventory disclosed usable damaged goods which ALEM estimates can be sold for P70,000.

Required - Using the gross profit method, determine the estimated cost of goods sold for the ten months ended Oct. 31, 2019?

Reference no: EM133185537

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Determine the estimated cost of goods sold for ten months

Reference no: EM133185537

Reference no: EM133185537

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