Which of the following transactions does not affect gross profit?
A)A customer returning merchandise that was sold for a profit.
B)The collection of cash on an account receivable,which was paid for by the customer within the discount period.
C)The journal entry to record bad debt expense.
D)Accepting a credit card for a sale and paying a service fee to the credit card company.

Question

Quizplus · Accepted Answer

Bad debt expense is related to accounts receivable and does not directly affect gross profit, which is calculated as sales minus cost of goods sold.

Which of the Following Transactions Does Not Affect Gross Profit