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6. Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of S18,000, cost of goods sold of S380,000, and $275,000 in operating expenses. Gross profit equals: A) S770,000. B) S115,000 C) $390,000 D) $402,000 E) $408,000 7. Garza Company had sales of S135.000, sales discounts of $2.000, and sales returns of S3,200 Garza Company's net sales equals: A) S5.200. B) S129.800 C) $133.000 D) S135,000 E) $140,200 8. A company has sales of S695,000 and cost of goods sold of S278,000. Its gross profit equals: A) S417,000) B) S695,000 C) $278,000 D) $417,000 E) $973,000 9. All of the following statements regarding inventory shrinkage are true except: A) Inventory shrinkage refers to the loss of inventory B) Inventory shrinkage is determined by comparing a physical count of inventory with recorded nventory amounts. C) Inventory shrinkage is recognized by debiting an operating expense D) Inventory shrinkage is recognized by debiting Cost of Goods Sold. E) Inventory shrinkage can be caused by theft or deterioration. 10. Which of the following accounts would be closed at the end of the accounting period with a debit? A) Sales Discounts. B) Sales Returns and Allowances. C) Cost of Goods Sold. D) Operating Expenses. E) Sales

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