Blue Company has the following data for the year. Beginning inventory Net sales revenue $210,000 $300,000...

Question

Question

Blue Company has the following data for the year. Beginning inventory Net sales revenue $210,000 $300,000 Net purchases Norma

business accounting

Answer 1

Answer #1

Answer - (a) $140000

Computation of ending inventory

= Beginning inventory + Net purchases + Gross profit - Net Sales revenue

= $210000 + $140000 + (30% of $300000) -$300000

Ending inventory = $140000

Note - Normal Gross Profit is 30% of the sales revenue.

Answer 2

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