Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 1

PROBLEM DATA
On September 30, 2013, the general ledger of Leon's Golf Shop, which uses the calendar year as its accounting period, showed the following year-to-date account balances:

The merchandise inventory account had a $48,000 balance on January 1, 2013. The historical gross profit percentage is 40%.
REQUIREMENT
Leon prepares quarterly financial statements and takes physical inventory once a year-at the end of the accounting period. In order to prepare the financial statements for the third quarter, the store needs to have an estimate of ending inventory. You have been asked to use the gross profit method to estimate the ending inventory. Review the worksheet called GP. Study it carefully because it may have a solution format somewhat different from the one shown in your textbook.