[The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $ 164,000 Income Tax Expense 17,470 Merchandise Sales (gross revenue) for Cash 238,000 Merchandise Sales (gross revenue) on Credit 41,600 Office Expenses 18,900 Sales Returns and Allowances 6,990 Salaries and Wages Expense 39,800 E6-17 Part 2 2-a. What was the amount of gross profit? 2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.)
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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E6-17 Analyzing Gross Profit Percentage on the Basis of a Multistep Income Statement [LO 6-6]
[The following information applies to the questions displayed below.]
The following data were provided by Mystery Incorporated for the year ended December 31:
| Cost of Goods Sold | $ | 164,000 | |
| Income Tax Expense | 17,470 | ||
| Merchandise Sales (gross revenue) for Cash | 238,000 | ||
| Merchandise Sales (gross revenue) on Credit | 41,600 | ||
| Office Expenses | 18,900 | ||
| Sales Returns and Allowances | 6,990 | ||
| Salaries and Wages Expense | 39,800 | ||
E6-17 Part 2
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2-a. What was the amount of gross profit?
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2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.)
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