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Beginning inventory is $55,000. purchases during the period were $45,000. during the year $80,000 of inventory was sold for $95,000. what is gross profit?

Respuesta :

Aliwohaish12
Hi there

In the debt side of trading account there are
Beginning inventory 55000
Add Purchase 45000
Total=100000

In the credit side there are
Sales 95000
Ending inventory
100000-80000=20000
Total=115,000

The difference between the debt side and the credit side is the gross p/l

And since the amount of credit side is bigger than the amount of the debt side it's gross profit

Gross profit=
115,000−100,000=15,000...answer

Good luck!