Klum's Fashions sold merchandise for $46000 cash during the month of July. Returns that month totaled $1000. If the company's gross profit rate is 30% Klum'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 $46000 - $1000 = $45000. The cost of goods sold is calculated as net sales revenue minus gross profit. With a gross profit rate of 30%, the gross profit is 30% of $45000, which is $13500. Therefore, the cost of goods sold is $45000 - $13500 = $31500.

Klum's Fashions Sold Merchandise for $46000 Cash During the Month