Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A company works out a draft profit for the year of $88000$. Included within this figure is a profit margin of $3000$ on goods sold on credit that have not yet been paid for. It also contains $500$ profit from goods sold to a customer under a sale or return arrangement. What is the correct gross profit?

  • A$84500$
  • B$85000$
  • C$87500$
  • D$91000$

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