Macarty Company's Records Indicate the Following Information for the Year $$\begin{array}{ll}\text {Merchandise inventory,1/1 }&\$550,000\\\text { purchases}&2,250,000\\\text {net sales }&3,100,000\end{array}$$

question 13

Multiple Choice

Macarty Company's records indicate the following information for the year: $$\begin{array}{ll}\text {Merchandise inventory,1/1 }&\$550,000\\\text { purchases}&2,250,000\\\text {net sales }&3,100,000\end{array}$$ On December 31, a physical inventory determined that ending inventory of $600,000 was in the warehouse. Macarty's gross profit on sales has remained constant at 30%. Macarty suspects that some of the inventory may have been taken by a new employee. At December 31, what is the estimated cost of missing inventory?

• A) $30,000
• B) $42,000
• C) $180,000
• D) $600,000

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