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Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock
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31 votes
Bob is a farmer and is required to use the accrual method. At the beginning of the year, Bob has inventory, including livestock held for resale, amounting to $10,000. During the year, Bob purchased livestock totaling $3,000. Bob's ending inventory was $4,000. Bob's net sales for the year totaled $17,000. What is Bob's gross profit for the current year

User TheDavidBarton
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1 Answer

19 votes
19 votes

Answer:

$3,000

Step-by-step explanation:

Gross Profit = Sales - Cost of Sales

Prepare a Trading Account for Bob to determine gross profit.

User Marcote
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