Asked by Jaylen Maloy on Jun 07, 2024
Verified
National Storage Company had sales of $1,000,000,sales discounts of $2,500,sales returns and allowances of $15,000,and cost of goods sold of $525,000.Calculate National's gross profit.
Gross Profit
The revenue a corporation retains after removing the costs related to the creation and sale of its products or the provision of its services.
Sales Discounts
Reductions in the amount due from a customer, offered as an incentive for early payment according to the sales terms.
Sales Returns
Transactions where customers return previously purchased merchandise, leading to a reversal of revenue.
- Assess the overall gross profit of a corporation.
Verified Answer
$1,000,000 - $2,500 - $15,000 - $525,000= $457,500
Learning Objectives
- Assess the overall gross profit of a corporation.
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