The following information relates to Bello's business for the year ended 31 December 2023: Sales ₦600,000; Returns inwards ₦20,000; Opening stock ₦50,000; Purchases ₦350,000; Returns outwards ₦15,000; Closing stock ₦60,000. What is Bello's gross profit?

Net sales = ₦600,000 − ₦20,000 = ₦580,000. Net purchases = ₦350,000 − ₦15,000 = ₦335,000. Cost of goods sold = ₦50,000 + ₦335,000 − ₦60,000 = ₦325,000. Gross profit = ₦580,000 − ₦325,000 = ₦255,000. Candidates who deduct returns outwards from sales instead of purchases, or who mishandle the stock figures, arrive at the plausible distractors.