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The Following Information Appears in Gordon Company's Records for the Year

Question 57

Multiple Choice

The following information appears in Gordon Company's records for the year ended December 31: The following information appears in Gordon Company's records for the year ended December 31: On December 31, a physical inventory revealed that the ending inventory was only $210,000. Gordon's gross profit on net sales has remained constant at 30 percent in recent years. Gordon suspects that some inventory may have been pilfered by one of the company's employees. At December 31, what is the estimated cost of missing inventory? A) $75,000 B) $82,500 C) $210,000 D) $292,500 On December 31, a physical inventory revealed that the ending inventory was only $210,000. Gordon's gross profit on net sales has remained constant at 30 percent in recent years. Gordon suspects that some inventory may have been pilfered by one of the company's employees. At December 31, what is the estimated cost of missing inventory?


A) $75,000
B) $82,500
C) $210,000
D) $292,500

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