The total Gross profit is = 31,300
<h3>What is Trail balance?</h3>
The general ledger accounts in a business's ledger are listed in a trial balance. The names of each nominal ledger account and their respective balances will be listed along with this list. Either a debit balance or a credit balance will be present in each nominal ledger account.
<h3>What is trial balance and its importance?</h3>
A trial balance is a report that details the total ledger balance of all accounts in a company. Debit and credit are the two columns. Financial statements like the Profit and Loss Account and Balance Sheet are created using the trial balance, which is created at the end of the fiscal year.
<h3>According to the given information:</h3>
Beginning Inventory 18,700
Purchases 154,000
Freight-In 8,000
Purchase Returns and Allowances (5,000)
Ending inventory <u> (21,000) </u>
COGS 154,700
Sales Revenue 190,000
Sales Returns and Allowances (3,000)
Freight-Out <u> (1,000) </u>
Net Sales: 186,000
Gross Profit: 186,000 - 154,700 = 31,300
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