On November 1, 2019, Alpha Omega, Inc. sold merchandise for $ 12 comma 000 , FOB destination, with payment terms, n/30. The cost of goods sold was $ 3 comma 840. On November 3, the customer returns on this sale amounted to $ 4 comma 800. The company received the balance on November 9, 2019. Calculate the gross profit from these transactions.

Question

Business

Brylee Stevenson

20 January, 20:42

On November 1, 2019, Alpha Omega, Inc. sold merchandise for $ 12 comma 000 , FOB destination, with payment terms, n/30. The cost of goods sold was $ 3 comma 840. On November 3, the customer returns on this sale amounted to $ 4 comma 800. The company received the balance on November 9, 2019. Calculate the gross profit from these transactions.

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Answers (1)

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Demarcus Harrington · Answer 1

Gross Profit is $9552

Explanation:

Given data

sold = $12000

cost of goods = $3840

returns = $4800

to find out

gross profit

solution

we apply here gross profit formula that is

Cost of goods = Cost of goods - (Return amount * Cost of goods sold / sale) ... 1

Cost of goods = 3840 - (4800 * 3480 / 12000)

Cost of goods = 2448

gross profit

Gross Profit = Sales - Cost of Goods Sold

Gross Profit = 12000 - 2448

Gross Profit is $9552