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Net sales revenue, cost of goods sold and gross profit

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Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

Purchases.....................
E250,000 Freight In.................. E8,000
Sales discounts............. 4,000 Purchase returns........ 7,000
Inventory Sales...................... 400,000
December 31, 20X1..... 20,000 Purchase discounts.... 3,000
December 31, 20X2..... 30,000 Sales returns............. 8,000

Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

Net sales revenue
Cost of goods sold
Gross profit

Solution Preview

Net sales revenue = Sales - Sales Discounts - Sales returns = 400,000-4,000-8,000=E388,000

Cost of ...

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The solution explains the calculation of net sales revenue, cost of goods sold and gross profit

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