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During the current year, merchandise is sold for $95,500 cash and $1,315,000 on account. The cost of the goods sold is $848,500. What is the amount of the gross profit

Question

During the current year, merchandise is sold for $95,500 cash and $1,315,000 on account. The cost of the goods sold is $848,500. What is the amount of the gross profit

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Step 1

Gross margin (gross profit):

Gross margin is the amount of revenue earned from goods sold over the costs incurred for the goods sold.

Step 2

Compute the amount of gross prof...

Gross profit Net sales Cost of goods sold
=Cash sales Credit sales- Cost of goods sold
$95,5001,315,000- $848,500
= $562.000
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Gross profit Net sales Cost of goods sold =Cash sales Credit sales- Cost of goods sold $95,5001,315,000- $848,500 = $562.000

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