Question

During the current year, merchandise is sold for $102,100 cash and $504,900 on account. The cost of the merchandise sold is $437,000. What is the amount of the grossprofit?

Answer 1

The gross profit is computed by adding the income and subtracting the costs. In this problem we have:

• incomes: $102,100 + $504,900,

,

• costs: $437,000.

Gross profit = $102,100 + $504,900 - $437,000 = $170,000

Answer: $170,000