Gore Company's Accounting Records Indicated the Following Information A Physical Inventory Taken on December 31, 2007, Resulted in Inventory

question 62

Multiple Choice

Gore Company's accounting records indicated the following information: $\begin{array}{lr}\text { Inventory, 1/1/07 } & 600,000 \\\text { Purchases during 2007 } & 3,000,000 \\\text { Sales during 2007 } & 3,800,000\end{array}$ A physical inventory taken on December 31, 2007, resulted in an ending inventory of $700,000.Gore's gross profit on sales has remained constant at 25% in recent years.Gore suspects some inventory may have been taken by a new employee.At December 31, 2007, what is the estimated cost of missing inventory?

• A)$50,000.
• B)$150,000.
• C)$200,000.
• D)$250,000.

---

Definitions:

Interactive Marketing

Marketing strategies that involve two-way communication between companies and consumers, often leveraging digital platforms.

Customer Relationships

The management of interactions and engagements between a business and its customers, focusing on enhancing loyalty and satisfaction.

Collaborative Filtering

A method used by recommender systems to predict the interests of a user by collecting preferences from many users, assuming that people who agreed in the past will agree in the future.

Buying Intentions

The likelihood or propensity of consumers to purchase a product or service in the near future.