Question

Stephen Company had the following partial list of account balances at year-end: Accounts Receivable: $9,000                                Cost of Goods Sold: $34,100

Sales Revenue: $57,200                                       Accounts Payable: $7,500

Sales Discounts: $1,600                                      Merchandise Inventory: $5,900

Operating Expenses: $8,400                                 Sales Returns and Allowances: $4,300

The amount of Gross Profit shown on the income statement would be:

A) $ 26,200

B) $ 8,800

C) $ 17,200

D) $ 8,200

E) $ 11,300

Answer 1

Sales Revenue	$57,200
(-) Sales return and allowances	$4,300
(-) sales discount	$1,600
Net sales	$51,300
(-) Cost of Good sold	$34,100
Gross Profit	$17,200

Option C. Is correct.