Murray's Fashions sold merchandise for $38,000 cash during the month of July. Returns that month totaled $800. 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 = Sales - Returns = $38,000 - $800 = $37,200
Cost of goods sold = Net sales revenue x Gross profit rate = $37,200 x 0.4 = $14,880
Therefore, Murray's will report monthly net sales revenue and cost of goods sold of $37,200 and $22,320.

Murray's Fashions Sold Merchandise for $38,000 Cash During the Month