Murray's Fashions sold merchandise for $57,000 cash during the month of July.Returns that month totaled $1,200.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 $57,000 - $1,200 = $55,800. The cost of goods sold is calculated as net sales revenue multiplied by (1 - gross profit rate), which is $55,800 * (1 - 0.40) = $33,480.

Murray's Fashions Sold Merchandise for $57,000 Cash During the Month