On the basis of the following data, what is the estimated cost of ...

[jerry coleman]

On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using theretail method? Cost Retail May 1 Merchandise inventory 125,000 166,667 May 1-31 Purchases 235,000 313,333 May 1-31 Sales 230,000
 a. 250,000
  b. 360,000
  c. 172,500
  d. 187,500

Question 2

Match the following terms with the appropriate definitions. Each term is to be used only once.
 
  a. Interest
  b. Contribution or contributed capital
  c. Entrepreneur
  d. Principal
  e. Retained earnings
  f. Comparative balance sheets
  g. Multistep income statement
 
  _____ 1. A person who starts a business.
  _____ 2. A statement that reports two consecutive fiscal years.
  _____ 3. The cost of borrowing money.
  _____ 4. Reports gross profit on sales (or gross margin) and operating income as subtotals.
  _____ 5. The equity that results from doing business that is kept in the company.
  _____ 6. The amount of money borrowed.
  _____ 7. An owner's investment in a company.

[juliaf]

Answer to Question 1

d

Answer to Question 2

c, f, a, g, e, d, b