During the current year, merchandise is sold for $147,500 cash and $381,750 on account. The cost of the goods sold is $242,000. What is the amount of the gross profit?

A) $771,250
B) $476,250
C) $287,250
D) $7,750

Gross Profit

The financial profit a company makes after subtracting the cost of goods sold from total sales revenue.

Cost of Goods Sold

The total expense of producing or purchasing the goods that were sold to customers during a specific period.

Merchandise Sold

The goods that a company has sold to its customers; relates to revenue generation in businesses dealing with physical products.