Question
Asked Nov 18, 2019
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During the current year, merchandise is sold for $18,300 cash and $295,700 on account. The cost of the goods sold is $188,000. What is the amount of the gross profit?

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Expert Answer

Step 1

Gross profit:

Gross profit can be defined as the profit generated from deducting the cost of goods form the sales.

Step 2

Determine the gro...

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Gross profit Net sales -Cost of goods sold (Cash sales+ Credit sales)- Cost of goods sold (S18,300+S295,700)-$188,000 $126,000

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