During its first month of operations, Purrfect Pets purchased 6,600 bags of dog food at a cost of $4 a bag and sold all 6,600 bags of dog food on account with payment terms of 2/10, n/30 for $11 each. A total of 2,400 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $220 were granted to customers whose dogs did not like the dog food. Required: Calculate the gross profit for the month. Calculate the gross profit percentage for the month.
Cash discount = 2400*$11*2% = $528
Sales = 6600*$11 = $72600
Cost of goods sold = 6600*$4 = $26400
Net sales = $72600 - $528 -$220 = $71852
Gross profit = $71852 - $26400 = $45452
Gross profit% = 63.26%
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During its first month of operations, Purrfect Pets purchased 6,600 bags of dog food at a...
During its first month of operations, Purrfect Pets purchased 5,800 bags of dog food at a cost of $2 a bag and sold all 5,800 bags of dog food on account with payment terms of $ 1/10, net 30 for $10 each. A total of 2,800 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $200 were granted to customers whose dogs did...
1.During its first month of operations, Purrfect Pets purchased 6,200 bags of dog food at a cost of $6 a bag and sold all 6,200 bags of dog food on account with payment terms of 2/10, n/30 for $10 each. A total of 2,900 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $200 were granted to customers whose dogs did not like...
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