21.) Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for defective merchandise, which was not returned to Abbey. Gomez Co. paid the invoice within the discount period. What is the gross profit earned by Abbey Co. on these transactions? Select one: a. $10,500 b. $30,772 c. $6,272 d. $31,400 16.) The service fee charged by a bank is a reduction to the bank account balance and therefore should be listed as a debit entry on the bank statement. Select one: True False
21.) Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for defective merchandise, which was not returned to Abbey. Gomez Co. paid the invoice within the discount period. What is the gross profit earned by Abbey Co. on these transactions? Select one: a. $10,500 b. $30,772 c. $6,272 d. $31,400 16.) The service fee charged by a bank is a reduction to the bank account balance and therefore should be listed as a debit entry on the bank statement. Select one: True False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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21.) Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for defective merchandise, which was not returned to Abbey. Gomez Co. paid the invoice within the discount period. What is the gross profit earned by Abbey Co. on these transactions?
Select one:
a. $10,500
b. $30,772
c. $6,272
d. $31,400
16.) The service fee charged by a bank is a reduction to the bank account balance and therefore should be listed as a debit entry on the bank statement.
Select one:
True
False
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