Question

During the current year, merchandise is sold for $163,700 cash and $597,300 on account. The cost of merchandise sold is $525,100. What is the amount of the gross profit?

Answer 1

$235,900

Step-by-step explanation:

This can be calculated as follows:

Total sales = Merchandise sold in cash + Merchandise on account = $163,700 + $597,300 = $761,000

Gross profit = Total sales - Cost of merchandise sold = $761,000 - $525,100 = $235,900

Therefore, the amount of the gross profit is $235,900.