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?A. $78,000B. $76,500C. $59,000D. $57,500

Answer 1

Answer:

D. $57,500

Explanation:

Gross income = sales - (goods returned + cost of goods sold) = $78,000 - ($1,500 + $19,000) = $78,000 - $20,500 = $57,500