Murray's Fashions sold merchandise for $114,000 cash during the month of July. Returns that month totaled $2,400. If the company's gross profit rate is 40%, Murray's will report monthly net sales revenue and cost of goods sold of

Question

Quizplus · Accepted Answer

Net sales revenue is calculated as total sales minus returns, which is $114,000 - $2,400 = $111,600. The cost of goods sold is calculated as net sales revenue multiplied by (1 - gross profit rate), which is $111,600 * (1 - 0.40) = $66,960.

Murray's Fashions Sold Merchandise for $114,000 Cash During the Month