Sales for the month were $650,000, 85% of sales were on account. Gross margin is 40% of sales.

Cash DR 97500.00

AC Receivable 552500.00
Sales 650000.00

Sales 650000.00
Cost of Sales 390000.00
Gross profit 260000.00

To calculate the gross margin for the sales on account, we need to determine the amount of sales that were made on account.

First, we can find the amount of sales made on account by multiplying the total sales for the month by the percentage of sales on account:

Amount of sales on account = Total sales * Percentage of sales on account
Amount of sales on account = $650,000 * 85% = $552,500

Next, we can calculate the gross margin for the sales on account by multiplying the amount of sales on account by the gross margin percentage:

Gross margin for sales on account = Amount of sales on account * Gross margin percentage
Gross margin for sales on account = $552,500 * 40% = $221,000

Therefore, the gross margin for the sales made on account is $221,000.