Given the information in the table below,what is the company's gross profit? $$\begin{array} { | l | r | }
\hline \text { Sales revenue } & \$ 360,000 \
\hline \text { Accounts receivable } & \$ 280,000 \
\hline \text { Ending inventory } & \$ 230,000 \
\hline \text { Cost of goods sold } & \$ 180,000 \
\hline \text { Sales returns } & \$ 50,000 \
\hline \text { Sales discount } & \$ 20,000 \
\hline
\end{array}$$

Question

Given the information in the table below,what is the company's gross profit? $$\begin{array} { | l | r | } 
\hline \text { Sales revenue } & \$ 360,000 \
\hline \text { Accounts receivable } & \$ 280,000 \
\hline \text { Ending inventory } & \$ 230,000 \
\hline \text { Cost of goods sold } & \$ 180,000 \
\hline \text { Sales returns } & \$ 50,000 \
\hline \text { Sales discount } & \$ 20,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Gross profit is calculated as Sales Revenue minus Cost of Goods Sold. Here, Gross Profit = $360,000 - $180,000 = $180,000. However, we must also subtract Sales Returns and Sales Discounts from Sales Revenue: $360,000 - $50,000 - $20,000 = $290,000. Then, Gross Profit = $290,000 - $180,000 = $110,000. The closest option is $100,000.

Given the Information in the Table Below,what Is the Company's