For the fiscal year, sales were $5,280,000, sales discounts were $100,000, sales returns and allowances were $75,000, and the cost of merchandise sold was $3,000,000.

What was the amount of net sales and gross profit?

a. Net Sales=5,105,000

b.Gross Profit=2,105,00

Is that correct?

Net Sales = Sales - Sales Discounts - Sales Returns & Allowances.

Gross Profit = Net Sales - Cost of Goods Sold

Quote:

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Originally Posted by pready

Net Sales = Sales - Sales Discounts - Sales Returns & Allowances.

Gross Profit = Net Sales - Cost of Goods Sold

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That is what I believe I did, Thank You!