As a result of taking a physical inventory count on December 31, 20106 the Cookie Company inventory was determined to be $425,000. The auditors for Cookie suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information:
Using the gross profit method, what did the auditors estimate as the amount of the inventory shortage at December 31, 2016?
A) $100,000
B) $75,000
C) $15,000
D) $0

Question

As a result of taking a physical inventory count on December 31, 20106 the Cookie Company inventory was determined to be $425,000. The auditors for Cookie suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information: 
 Using the gross profit method, what did the auditors estimate as the amount of the inventory shortage at December 31, 2016?
A) $100,000 
B) $75,000 
C) $15,000 
D) $0

Quizplus · Accepted Answer

The Answer of As a result of taking a physical inventory count on December 31, 20106 the Cookie Company inventory was determined to be $425,000. The auditors for Cookie suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information: 
 Using the gross profit method, what did the auditors estimate as the amount of the inventory shortage at December 31, 2016?
A) $100,000 
B) $75,000 
C) $15,000 
D) $0

As a Result of Taking a Physical Inventory Count on December