Owens Janitor Supply Has the Following Account Balances at the End

Multiple Choice

Owens Janitor Supply has the following account balances at the end of the current accounting period. $\begin{array}{|l|c|}\hline \text { Beginning inventory } & \$ 50,000 \\\hline \text { Net purchases } & 400,000 \\\hline \text { Net sales revenue } & 500,000\\\hline \end{array}$ A normal gross profit percent is 40%.What is the Estimated ending inventory as determined by the gross profit method?

A) $150,000
B) $50,000
C) $200,000
D) $300,000