Calculate The Gross Profit?

I have been trying to calculate the gross profit for this problem for a while and have read through the book and on the internet and it still got me nowhere near the answer. Here is the question:
Determine the gross profit to be reported on the income statement for the year ended March 31, 2011.
Merchandise Inventory, April 1, 2010 $193,250
Merchandise Inventory, March 31, 2011 $180,100
Purchases $1,079,600
Purchases returns and allowances $51,200
Purchases discounts $18,500
Sales $1,860,000
Freight In $19,250

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One Response to “Calculate The Gross Profit?”

  1. JKRB says:

    Beg. Inv. + Purchases – Pur. Ret. – Pur. Dis. + Freight in – End. Inv. = COGS
    193,250 + 1,079,600 – 51,200 – 18,500 + 19,250 – 180,100 = $1,042,300
    Sales – COGS = Gross Profit
    1,860,000 – 1,042,300 = $817,700

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