The Multi-Tech Uses the Gross Profit Method to Estimate Inventories

question 10

Essay

The Multi-Tech uses the gross profit method to estimate inventories. Fill in the missing amounts. $$\begin{array} { | l | r | r | } \hline \text { Gross Sales } & \text { a } & \\\hline \text { Returns and Allowances } & & 1,500 \\\hline \text { Sales Discounts } & & 3,250 \\\hline \text { Net Sales } & & \$ 300,000 \\\hline & & \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Beginning Inventory } & 60,000 & \\\hline \text { Purchases } & 175,000 & \\\hline \text { Goods Available } & \mathrm { b } & \\\hline \text { Ending Inventory } & \mathrm { c } & \\\hline \text { Cost of Goods Sold } & & \mathrm { d } \\\hline \text { Gross Profit (43\%) } & & \mathrm { e } \\\hline & & \\\hline\end{array}$$

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Definitions:

Tax on Sellers

A financial charge imposed by a government on sellers of goods or services, which can affect market prices and quantities.

Market Size

The total volume of a market, often measured in terms of total sales, that is available for a product or service.

Tax on Buyers

A financial charge imposed on purchasers within a market, which can shift demand curves and affect market equilibrium.

Demand Decreases

A decrease in the quantity of a product or service that consumers are willing and able to purchase at given prices.