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16 October, 16:29

A company reports Sales Returns and Allowances of $40,000 and Net Sales of $680,000. It also reports Cost of Goods Sold of $350,000. Find the company's Sales and Gross Profit.

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  1. 16 October, 18:51
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    Sales = $720, 000

    Gross profits = $ 330, 000

    Explanation:

    Given that

    Allowances = 40, 000

    Net sales = 680, 000

    Cost of goods sold = 350, 000

    Recall that,

    Gross profit = Sales - Cost of goods sold

    Therefore

    Gross profit = 680,000 - 350,000

    = $330, 000

    Also,

    Net Sales = Sales - Sales Returns and Allowances

    Therefore,

    Sales = Net Sales + Sales Returns and Allowances

    Thus

    Sales = 680, 000 + 40, 000

    = $720, 000
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