Heller company offers an unconditional return policy to its customers. during the current period, the company records total sales of $850,000, with a cost of merchandise to heller of $340,000. based on past experience, heller company expects 4% of sales to be returned. how much gross profit will heller company recognize for the current period? select one: a. $510,000 b. $489,600 c. $816,000 d. $850,000 e. $360,400

B. $489,600

Explanation:

The computation of thee gross profit is shown below:

= Net sales - Net cost of goods sold

where,

Net sales = Total sales - sales return

                = $850,000 - $34,000

                = $816,000

Net cost of goods sold = Cost of goods sold - merchandise return

                                      = $340,000 - $13,600

                                      = $326,400

Now put these values to the above formula

So, the value would be equal to

= $816,000 - $326,400

= $489,600