Question

Mel operates a video game store. His records indicate that he had sales of $78,000. Customers returned $1,500 worth of video games because of various defects. His cost of goods sold was $19,000. What is Mel's Schedule C gross income?

$78,000

$76,500

$59,000

$57,500

Answer 1

Answer = D) $57,500

Mel's Schedule C gross income =

Gross Receipt from sales Less Return & allowances Less cost of goods sold

= 78000 - 1500 - 19000

= $ 57,500