Sales revenue is $367,810 while sales returns and allowances and sales discounts total $24,180.The cost of goods sold is $216,490,operating and other expenses are $28,500,and the company pays $31,640 in income tax.Which of the following is true?
A)Net sales is $127,140 and gross profit is $98,640.
B)Net sales is $67,000 and gross profit is $98,640.
C)Net sales is $343,630 and gross profit is $127,140.
D)Net sales is $367,810 and gross profit is $67,000.

Question

Quizplus · Accepted Answer

Net sales = Sales revenue - (Sales returns and allowances + Sales discounts)
Net sales = $367,810 - ($24,180)
Net sales = $343,630

Gross profit = Net sales - Cost of goods sold
Gross profit = $343,630 - $216,490
Gross profit = $127,140

Sales Revenue Is $367,810 While Sales Returns and Allowances and Sales