ABC Company purchased inventory on credit for $100,000 during the year. The company paid $30,000 to suppliers and sold inventory with a total cost of $75,000 for $120,000 on credit during the year. The company uses the perpetual inventory system. What is the cost of goods sold and gross profit for the year?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below To calculate the cost of goods sold COGS we need to subtract the ending inventory from the cost of goods available for sale COGAS To calcul... View the full answer