Bert Logistics Has the Following Company Information for August: Goods

question 119

Multiple Choice

Bert Logistics has the following company information for August: goods available for sale at cost are $19,000, retail is $28,500, and sales at retail equal $21,500. Bert has a normal gross profit of 35%. The cost of estimated ending inventory under the retail method is: (Round any percentages to two decimal places, X.XX%, and your final answer to the nearest dollar.)

• A) $4,667.
• B) $5,281.
• C) $4,550.
• D) $2,450.

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Definitions:

IFRS

International Financial Reporting Standards are a set of accounting rules and standards that determine how transactions and other accounting events should be reported in financial statements globally.

GAAP

The accounting standards and rules that are broadly adhered to in financial reporting are encapsulated in the Generally Accepted Accounting Principles.

Double-Entry Accounting

An accounting principle requiring that every financial transaction is recorded in at least two different nominal ledger accounts, ensuring the accounting equation is always in balance.

GAAP

The standard set of guidelines for financial accounting that are widely accepted in a particular jurisdiction, known as Generally Accepted Accounting Principles.