A company reports Sales Returns and Allowances of $40,000 and Net Sales of $680,000. It also reports Cost of Goods Sold of $350,000. Find the company's Sales and Gross Profit.

Sales = $720, 000

Gross profits = $ 330, 000

Explanation:

Given that

Allowances = 40, 000

Net sales = 680, 000

Cost of goods sold = 350, 000

Recall that,

Gross profit = Sales - Cost of goods sold

Therefore

Gross profit = 680,000 - 350,000

= $330, 000

Also,

Net Sales = Sales - Sales Returns and Allowances

Therefore,

Sales = Net Sales + Sales Returns and Allowances

Thus

Sales = 680, 000 + 40, 000

= $720, 000