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Question
If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data?
Sept. 1 Merchandise inventory (at cost) $125,000
Sept. 1–30 Purchases, net (at cost) 300,000
Sept. 1–30 Sales 150,000
a. $320,000
b. $192,500
c. $275,000
d. $105,000
Answer
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