Which of the following transactions does not affect gross profit?

A) A customer returning merchandise that was sold for a profit.
B) The collection of cash on an account receivable,which was paid for by the customer within the discount period.
C) The journal entry to record bad debt expense.
D) Accepting a credit card for a sale and paying a service fee to the credit card company.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Accounts Receivable

Accounts receivable refers to the funds that a company's customers owe it for products or services that have already been provided but for which payment has not yet been received.

Bad Debt Expense

The estimated amount of accounts receivable that will not be collected, recognized as an expense.