Question

calculate the gross profit percentage ellall Department Stores reported the following amounts in its adjusted trial balance prepared as of its December 31 year-end: Administrative Expenses, $2,100; Cost of Goods Sold, $21,060; Income Tax Expense, $2,930; Interest Expense, $1,500; Interest Revenue, $180; General Expenses, $2,300; Sales Revenue, $39,000; Sales Discounts, $1,950; Sales Returns and Allowances, $1,755; and Delivery (freight-out) Expense, $270.

Answer 1

Answer:

gross profit percentage = 40.33%

Explanation:

gross profit percentage = [(net sales revenue - cost of goods sold) / net sales revenue] x 100

• net sales revenue = $39,000 (total sales) - $1,950 (sales discounts) - $1,755 (sales discounts) = $35,295
• cost of goods sold = $21,060

gross profit percentage = [($35,295 - $21,060) / $35,295] x 100 = 40.33%