24) Refer to the following trial balance Debit Credit Cash Accounts Receivable I

Question

24) Refer to the following trial balance Debit Credit Cash Accounts Receivable Inventory Supplies Land Accounts Payable Notes Payable Common Stock Retained Earnings Dividends Sales Revenue Sales Discounts Forfeited Cost of Goods Sold Delivery Expense Salaries Expense Utilities Expense Rent Expense $6,000 15,000 20,000 120,000 $6,000 22,000 81,000 12,000 3,00 180,000 81,000 5,00 23,000 20,000 Interest Expense Totals 305,000 $305,00 How much is the gross profit? A) $95,000 B) $97,000 C) $103,000 D) $99,000 25)

Explanation / Answer

Gross profit = Net sales - Cost of goods sold

= (180,000+4000) - 81,000

= 103,000

Hence, the correct answer is option 'C'.

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