The Following Data Is Available Using the Gross Profit Method, the Estimated Ending Inventory Balance

question 48

Multiple Choice

The following data is available: $$\begin{array} { | l | r | } \hline \text { Net sales } & \$ 16,000 \\\hline \text { Normal gross profit } & 45 \% \\\hline \text { Beginning inventory } & 12,000 \\\hline \text { Net purchases } & 7,000 \\\hline\end{array}$$ Using the gross profit method, the estimated ending inventory balance would be:

• A) $15,000.
• B) $7,150.
• C) $10,200.
• D) $5,850.

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