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Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615

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BuyFindarrow_forward

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem
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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?

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

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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