Balan’s Co.’s pricing structure

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Balan’s Co.’s pricing structure has been formulated to yield a gross margin of 40%. The following data pertain to the year ended December 31, 2018:Sales $600,000Beginning Inventory $100,000Purchases $400,000Physical inventory at year-end $100,000Balan is satisfied that all sales and purchases have been fully and properly recorded. How much might Balan reasonably estimate as missing inventory at December 31, 2018?”show solution”

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