Answer:
Newark's cost of sales is A $307,000
Explanation:
Cost of Sales can be determined by using the Missing figure Approach for this question.
Cost of Sales = Sales less Gross Profit
Calculation of Sales figure :
Cash sales, $450,000
Credit sales, $1,350,000
Less Sales returns and allowances, ($90,000)
Less Sales Discounts ($43,000)
Sales $1,667,000
Calculation of Cost of Sales
Thus Cost of Sales = $1,667,000 - $1,360,000 (given)
= $307,000
