Question

during the current year, merchandise is sold for $237,500 cash and $625,000 on account. the cost of the goods sold is $422,300. what is the amount of the gross profit?

Answer 1

Gross profit = $440,200

Step-by-step explanation:

Sales revenue

Cash sales: $237,500

Account sales: $625,000

Total sales revenue: $862,500

Cost of goods sold: $422,300

Gross profit: $440,200

Gross profit = Sales revenue - Cost of goods sold

Gross profit = $237,500 + $625,000 - $422,300