In 2017,Amana sold 10 washing machines,which cost $700 each,for a price of $1 300 each.All sales are made on credit and $7 000 was collected in 2017.Using the sales method,how much gross profit will Amana recognise in 2017?
A)$6 000
B)$7 000
C)$13 000
D)$6 800

Question

Quizplus · Accepted Answer

Gross profit = Sales revenue - Cost of goods sold= (10 x $1,300) - (10 x $700)= $13,000 - $7,000= $6,000

In 2017,Amana Sold 10 Washing Machines,which Cost $700 Each,for a Price