Answered

Looking for reliable answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

A company has the following selected account balances: Sales $ 250,000 Sales Discounts 1,500 Sales Returns and Allowances 2,300 Sales Salaries Expense 56,000 Store Supplies Expense 15,000 Advertising Expense 8,000 Cost of Goods Sold 125,000 What is the gross profit that would appear on a multiple-step income statement:

Sagot :

Zviko

Answer:

$121,200

Explanation:

The gross profit that would appear on a multiple-step income statement can be determined as :

Gross Profit = Net Sales - Cost of Sales

where,

Net Sales = Sales - Sales Discounts -  Sales Returns and Allowances

                =  $ 250,000 -  $1,500 -  $2,300

                =  $246,200

therefore,

Gross Profit = $246,200 - $125,000

                    = $121,200

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.