Copyright

Tinnell Industries has gross sales of $30,000 for the year. Its cost for the goods sold is...

Question:

Tinnell Industries has gross sales of $30,000 for the year. Its cost for the goods sold is $18,000. Returns and allowances amounted to $2,000. It purchased equipment normally selling for $10,000 at a 20% discount.

Based on these facts, what is its gross income for the year?

Gross Income

Gross income or gross profit is the remaining amount after deducting the cost of goods sold from the net sales or net revenue.

  • Revenue - refers to the gross amount generated from selling goods or from providing services
  • Cost of Goods Sold - refers to the cost incurred in producing or making the products that were sold for the period.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

Gross Income = Net Sales - Cost of Goods Sold

  • Net Sales = Sales - Sales Discounts - Sales Returns and Allowances

_____

The 20%...

See full answer below.


Learn more about this topic:

Loading...
What Is Gross Profit? - Definition, Formula & Calculation

from

Chapter 9 / Lesson 7
32K

Understand the meaning of gross profit in accounting. Discover the formula for calculating gross profit and explore some examples of gross profit calculation.


Related to this Question

Explore our homework questions and answers library