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. This total includes a profit margin of $3000 on goods sold on credit that have not yet been paid for. It also contains $500 profit made on goods sold to a customer on a sale or return basis. What should the correct gross profit be?

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

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