The Following Data Is Available: Using the Gross Profit

question 145

Multiple Choice

The following data is available: Using the gross profit method, the Cost of goods sold would be:

• A)$15,000.
• B)$7,150.
• C)$7,850.
• D)$5,850.

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Definitions:

Simple Entry

A journal entry that involves only two accounts.

Chart of Accounts

An organized list of all the accounts in a company’s general ledger used for recording financial transactions.

Asset Accounts

Accounts on the balance sheet representing valuable resources owned by the company expected to provide future benefits.

Three Column Form

A documentation format usually used in accounting and bookkeeping that showcases debits, credits, and balance for individual accounts.