Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A trader has drawn up a draft income statement for the year, and it shows a gross profit of $64200. He then finds the following two errors. 1 Closing inventory has been overstated by $2500. 2 Sales returns of $400 have been recorded as purchases returns. What should the correct gross profit be?

  • A$60900
  • B$62100
  • C$65900
  • D$66300

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