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The following account information is from ABC's Hair Products 12/31/20xx Partial Adjusted Trial Balance
The following account information is from ABC's Hair Products 12/31/20xx Partial Adjusted Trial Balance. What is the dollar ($) amount of ABC's Hair Products gross profit? Account Name Normal Account Balance $20,000 Cash $10.969 Inventory Deferred Revenue $10.000 $23.000 Retained Earnings Sales Revenue $115.000 Rent Expense $22.765 Cost of Goods Sold $64.768 Income Tax Expense $11.969 Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123. you would only input: 24123
Expert Solution
The gross profit is Sales minus cost of goods sold,hence gross profit must be:
Sales revenue $ 115,000
Less: COGS $ 64,768
Gross profit $ 50,232
Hence the gross profit for ABC hair product is $ 50,232.
Please comment for any explanation,
Thanks
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