The accounting record for Katzen Company reported the following selected information: Operating Expenses $270,000 Sales Returns...

Question

Question

The accounting record for Katzen Company reported the following selected information:

Operating Expenses	$270,000
Sales Returns and Allowances	78,000
Sales Discounts	36,000
Sales Revenue	1,050,000
Cost of Goods Sold	402,000

Determine Katzen Company's gross profit.

Select one:

A. $462,000

B. $498,000

C. $534,000

D. $420,000

Answer 1

Answer #1

Net sales=Sales Revenue-Sales Returns and Allowances-Sales Discounts

=1,050,000-78,000-36,000=$936000

Gross profit=Net sales-Cost of Goods Sold

=936000-402,000

=$534,000

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Answer 2

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