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Question 6.1: Gross Profit  During the current year, merchandise is sold f......

Gross Profit 

During the current year, merchandise is sold for $250,000 cash and for $975,000 on account. The cost of the merchandise sold is $735,000. What is the amount of the gross profit?

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The gross profit is $490,000 ($250,000 + $975,000 − $735,000).

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