Andrea's Fashions sold merchandise for $95,000 cash during the month of July. Returns that month totaled $2,000. If the company's gross profit rate is 40%, Andrea'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 $95,000 - $2,000 = $93,000. The cost of goods sold is calculated by subtracting the gross profit from net sales. With a gross profit rate of 40%, the gross profit is 40% of $93,000, which is $37,200. Therefore, the cost of goods sold is $93,000 - $37,200 = $55,800.

Andrea's Fashions Sold Merchandise for $95,000 Cash During the Month