The gross profit is _______?

Use the following information to answer the question below

Trading Account of Umeh Enterprises for the year ended 31st December 2019

A. GH⊄ 88,800
B. GH⊄ 43,200
C. GH⊄ 152,800
D. GH⊄ 107,200

Correct Answer:

Option A = GH⊄ 88,800

Explanation

Gross profit = (Sales + Return inward) – Cost of goods sold
= 196,000 – 107,200
= 88,800