As a Result of Taking a Physical Inventory Count on December

question 35

Multiple Choice

As a result of taking a physical inventory count on December 31, 20106 the Cookie Company inventory was determined to be $425,000. The auditors for Cookie suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information:
Using the gross profit method, what did the auditors estimate as the amount of the inventory shortage at December 31, 2016?

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Definitions:

Evidence-based

An approach that prioritizes the use of methods and practices that have been scientifically tested and proven to be effective.

Multidimensional Family Therapy

An integrative approach to treating adolescent drug use and related behavioral problems through family-based interventions.

Functional Family Therapy

A short-term, evidence-based therapeutic intervention focused on addressing behavioral and relational issues within families.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a repetitive and persistent pattern of behavior in which the basic rights of others or major age-appropriate societal norms are violated.