Question

Sales 1,20,000 ; Sales Returns 30,000

Cost of goods sold 54,000. Gross Profit = ----------.​

Answer 1

To find the cost of goods sold during an accounting period, use the COGS formula:

COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.

Gross Income = Gross Revenue – COGS.

Net Income = Revenue – COGS – Expenses.