A company reports the following amounts at the end of the year:
Sales revenue $ 900,000
Beginning inventory 100,000
Total purchases 500,000
Freight charges 10,000
Purchase discounts 25,000
Purchase returns 50,000
Ending inventory 120,000
Operating expenses 200,000
For what amount would the company report gross profit?
A) $285,000.
B) $485,000.
C) $465,000.
D) $400,000.
Answer: B
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