Asked by Morris Mwendwa on Jun 14, 2024
Verified
During the current year, merchandise is sold for $117,500 cash and $241,750 on account. The cost of the goods sold is $157,400. What is the amount of the gross profit?
Gross Profit
The financial metric that represents the difference between sales revenue and the cost of goods sold, excluding other expenses and overhead.
Merchandise Sold
Goods that have been sold by a company, generating revenue; part of the sales process in a retail or wholesale environment.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold in a company, including the cost of raw materials and labor.
- Calculate gross profit accurately.
Verified Answer
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Learning Objectives
- Calculate gross profit accurately.