Answer:
$489,600
Explanation:
Given that,
Total sales = $850,000,
Cost of merchandise to Heller = $340,000
Heller Company expects 4% of sales to be returned
Sales:
= Total sales - Sales returned
= $850,000 - (4% of $850,000)
= $816,000
Cost of goods sold:
= cost of merchandise - (4% of cost of merchandise)
= $340,000 - (4% of $340,000)
= $326,400
Gross Profit:
= Sales - Cost of Good Sold
= $816,000 - $326,400
= $489,600
Therefore, the Heller company will recognize $489,600 of gross profit in the current period.
