For the Current Month, Brixell Company Had Net Sales of $13,000

question 59

Multiple Choice

For the current month, Brixell Company had net sales of $13,000. Brixell typically achieves a gross profit of 15%. Cost of goods sold under the gross profit method would be

• A) $6,000
• B) $7,000
• C) $8,000
• D) $11,050
• E) $16,000

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Definitions:

Contract Law

The body of law that governs the agreements made between parties, detailing the creation, execution, and enforcement of contracts.

Age of Majority

The age at which a person is legally recognized as an adult and is fully responsible for his or her actions.

Ratify Contracts

To formally confirm or approve an agreement, making it officially valid.

Minor

A person who is below the legal age of majority, which varies by jurisdiction, making them legally incapable of entering into certain contracts and responsibilities.