Country Guides Inc The Estimated Ending Inventory for the Second Quarter Is:
A)$30,250

Multiple Choice

Country Guides Inc.uses the gross margin method to estimate its ending inventory for each quarter.The following information for the second quarter was provided from the records: $\begin{array} { l } \text {Sales revenue. }&\$200,000\\ \text {Purchases. }&47,500\\ \text { Freight-in.}&1,400\\ \text {Beginning inventory. }&14,250\\ \text {Purchase returns. }&900\\ \text {Estimated gross margin rate }&72 percent\\\end{array}$
The estimated ending inventory for the second quarter is:

A) $30,250
B) $32,250
C) $33,250
D) $35,050