Problemin year 1 pepper company reported a 40000 gross, Ask an Expert

Accounting

Problem:

In Year 1 Pepper Company reported a $40,000 gross margin on $200,000 of sales revenue. In Year 2 Pepper's accounting records showed sales revenue of $220,000 and cost of goods available for sale of $210,000.

Required:

Question: Using the gross margin method of estimating inventory, the estimated amount of ending inventory for Year 2 is

$84,000.
$40.000.
$44,000.
$34,000.

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164833

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