Question
Janice Martin sells Avon products. This is the second year that she has operated the business. The beginning inventory on January 1 was $725. The
Janice Martin sells Avon products. This is the second year that she has operated the business. The beginning inventory on January 1 was $725. The ending inventory on December 31 was $1,125. Her records contain the following information regarding her sales and purchases. Calculate the cost of goods sold and gross profit for Ms. Martin's business.
Sales to Customers $5,497
Total Purchases $2,458
UPS Charges (receiving purchases) $ 375
Personal Use Items $ 625
Answer the following question based on the information listed above. What is the amount of gross profit for Janice Martin's Avon business?
a) $5,497
b) $1,808
c) $3,689
d) $2,458
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