A company shows the following balances:Sales$1,000,000225,00025,000600,00013Sales Returns and AllowancesSales DiscountsCost of Goods SoldWhat is the gross profit rate?a. 60%b. 80%c. 40%d. 20%Explore

Gross profit is calculated as difference between sales and cost of goods sold. Gross profit % is…

A company shows the following balances: Sales $1,000,000 225,000 25,000 600,000 Sales Returns and Allowances Sales Discounts Cost of Goods Sold What is the gross profit rate? a. 60% b. 80% C. 40% d. 20%

A company shows the following balances: Sales $1,000,000 225,000 25,000 600,000 Sales Returns and Allowances Sales Discounts Cost of Goods Sold What is the gross profit rate? a. 60% b. 80% C. 40% d. 20%

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.1BE: Gross profit During the current year, merchandise is sold for 18,300 cash and 295,700 on account....

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Question

A company shows the following balances:
Sales
$1,000,000
225,000
25,000
600,000
13
Sales Returns and Allowances
Sales Discounts
Cost of Goods Sold
What is the gross profit rate?
a. 60%
b. 80%
c. 40%
d. 20%
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