JAMB - Accounts Principles Of Accounts (2004 - No. 19)

Use the information below to answer questions 23 and 24.

Beginning inventory............N?
Purchases......................N?
Ending inventory...............N4,800
Sales..........................N12,800
Wages..........................N1,040
Gross profit...................N5,900

The beginning inventory was estimated at 80% of sales.
Determine the amount for the beginning inventory?
N20,140
N10,240
N8,140
N7,240

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