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

Preparation of financial statements — practice question

During its first year of trading, a trader collected $15000$ from credit customers. By the year-end, those customers still owed $600$. The amount paid to credit suppliers was $3000$, and at the end of the period $500$ was still due to them. No unsold goods remained in closing inventory. What was the gross profit for the period?

  • A$10900
  • B$11500
  • C$12100
  • D$12500

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