Asked by Kevin Rodrigues on May 12, 2024
Verified
During the current year, merchandise is sold for $86,000 cash and for $93,950 on account. The cost of the goods sold is $76,240. What is the amount of the gross profit?
Gross Profit
The income left over for a company once it has covered the costs involved in manufacturing and selling its products, or in offering its services.
Merchandise Sold
Products or goods that have been sold to customers, typically referring to transactions within the retail or wholesale sector.
Cost of Goods Sold
Directly incurred costs associated with the production of a company’s goods for sale, comprising material and labor expenses.
- Compute the gross profit accurately.
Verified Answer
LA
Linda ArriolaMay 15, 2024
Final Answer :
Total sales, $179,950 - Cost of goods sold, $76,240 = Gross profit, $103,710
Learning Objectives
- Compute the gross profit accurately.