Chen's Department Store Chen's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below:
Refer to the account information for Chen's Department Store.
Determine Chen's gross profit.

Question

Chen's Department Store Chen's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below:
 Refer to the account information for Chen's Department Store.
Determine Chen's gross profit.

Quizplus · Accepted Answer

Gross profit is calculated as net sales minus cost of goods sold.  Therefore, we need to subtract the cost of goods sold of $43,000 from the net sales of $115,000 to get the gross profit of $72,000.

Chen's Department Store Chen's Department Store Is a Merchandising Company