1.
Which of the following is not a component of the gross profit calculation?
Cost of sales.
Sales returns and allowances.
Allowance for doubtful accounts.
Credit card discounts.
Cost of sales.
Sales returns and allowances.
Allowance for doubtful accounts.
Credit card discounts.
Solution
Which of the following is not a component of the gross profit calculation?
Answer
C) Allowance for doubtful accounts.
Note : Allowance for doubtful accounts.is shown in Operating Expenses rather than direct
expenses