Country Guides Inc The Estimated Ending Inventory for the Second Quarter Is:
A)

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: $\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 200,000 \\\hline \text { Purchases } & 47,500 \\\hline \text { Freight-in } & 1,400 \\\hline \text { Beginning inventory } & 41,250 \\\hline \text { Purchase returns } & 900 \\\hline \text { Estimated gross margin rate } & 72 \text { percent } \\\hline\end{array}$
The estimated ending inventory for the second quarter is:

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