Financial information is presented below Operating Expenses

Financial information is presented below Operating Expenses Sales Returns and Allowances Sales Discounts Sales Cost of Goods Sold $45,000 13,000 6,000 150,000 79,000 Gross profit would be 1) $52.000. 2) $58,000. 3) $65,000. 4) $71.000.

Solution

Gross profit = net sales - cost of goods sold Net sales Sales 150,000 less:Sales return and allowances 13,000 less:Sales discount 6,000 Net sales 131,000 less:c ost of goods sold 79,000 Gross profit 52,000 answer ) option 1 $52,000