# Gross profit During the current year, merchandise is sold for $18.300 cash and$295,700 on account. The cost of the merchandise sold is $188,000. What is the amount of the gross profit? BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 BuyFind ### Accounting 27th Edition WARREN + 5 others Publisher: Cengage Learning, ISBN: 9781337272094 #### Solutions Chapter Section Chapter 6, Problem 6.1BPE Textbook Problem ## Gross profitDuring the current year, merchandise is sold for$ 18.300 cash and $295,700 on account. The cost of the merchandise sold is$188,000. What is the amount of the gross profit?

Expert Solution
To determine

Gross profit represents the revenue after the deduction of cost of goods sold from the net sales of a business. Its mathematical representation is as below:

Gross profit=Net salesCost of goods sold

To Compute: The gross profit of Company.

### Explanation of Solution

Calculate gross profit for Company.

Cash Sales = $18,300 Credit Sales =$295,700

Cost of goods sold = \$188,000

Gross profit = Net sales Cost of goods sold=(CashSales+CreditSales)

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