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22 February, 09:21

Baco opens its business in 20x2 and purchases merchandise on account for $88000. In 20x2, baco pays $67000 cash on the $88000 due, sales are $145000 and ending inventory is $24000. Baco gross profit for 20x2 is?

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  1. 22 February, 09:24
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    Answer:$81,000

    Explanation:

    Sales is $145,000

    Less:

    Cost of goods sold is purchases less closing inventory

    $88,000 - $24,000

    = $64,000

    Gross profit = $145,000 - $64,000

    = $81,000
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