Question

In April, Green Products received $62,000 in cash for its products and had returns totaling $2,000. Its gross profit rate was 45 percent. For the month of April, it will report net sales revenue and cost of goods sold of_______.

Answer 1

$60,000 and $33,000

Step-by-step explanation:

As we know that

Net sales revenue = Sales revenue - returned goods

= $62,000 - $2,000

= $60,000

And, the cost of goods sold equal to

= Sales - gross profit

where,

Sales = $60,000

And, the gross profit is 45% of sales = $60,000 × 45% = $27,000

So, the cost of goods sold is

= $60,000 - $27,000

= $33,000