# Estefan’s accounts showed a gross profit for the year of £27,200. After the accounts were prepared it was found that the opening inventory/stock had been overstated by £1,200 while closing inventory/stock had been understated by £1,700.What is the amount of Estefan’s corrected gross profit for the year?  Answers:a. £24,300 b. £26,700 c. £27,700 d. £30,100

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Estefan’s accounts showed a gross profit for the year of £27,200. After the accounts were prepared it was found that the opening inventory/stock had been overstated by £1,200 while closing inventory/stock had been understated by £1,700.

What is the amount of Estefan’s corrected gross profit for the year?

 Answers: a.  £24,300 b.  £26,700 c.  £27,700 d.  £30,100
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Step 1

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

Step 2

Calculate the amount of Estefan’s correcte...

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