Question
Asked Dec 19, 2019
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Paul Company uses its periodic inventory system and you are given the following
information:
Sales...
$65,100
$16,800
$14,700
$48,300
Inventory- Beginning.
Inventory- Ending...
Purchases....
............
How much is the gross profit?
A. $14,700.
B. $50,400.
C. $48,300.
D. $65,100.
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Paul Company uses its periodic inventory system and you are given the following information: Sales... $65,100 $16,800 $14,700 $48,300 Inventory- Beginning. Inventory- Ending... Purchases.... ............ How much is the gross profit? A. $14,700. B. $50,400. C. $48,300. D. $65,100.

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Expert Answer

Step 1

Calculate cost of goods sold:

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Cost of goods sold = Inventory begining +Purchases – Inventory ending =$16,800 +$48,300 – $14,700 = $50,400

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Step 2

Calculate the gross profi...

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Gross profit = Sales- Cost of goods sold =$65,100 – $50, 400 = $14,700

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