Question

ilm/takeAssignment takeAssignmentMain doinprogress true e Calculator Abbey Co. sold merchandise to Gomez Co, on account, $29,000, terms 2/15, net 45. The cost of the goods sold was $13,532. Abbey Co. issued a credit memo for $3,500 for merchandise returned that originally cost $1,434. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? $16,322 $12,892 $3,500 $12,098 Previous Next > Email instructor Submit Test for Grading

Answer 1

SALES	$        29,000
SALES RETURN	$          3,500
NET SALES	$        25,500
CASH DISCOUNT	$              510
2% OF 25500
COST OF GOODS SOLD	= 13532 - 1434
	$        12,098
NET PROFIT	$        12,892

SALES	29000
SALES RETURN	3500
NET SALES	=B1-B2
CASH DISCOUNT	=B3*2%
2% OF 25500
COST OF GOODS SOLD	= 13532 - 1434
	=13532-1434
NET PROFIT	=B3-B4-B8