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 of undiscounted merchandise returned which originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? A. $10,500 B. $30,772 C. $7,972 D. $31,400
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 of undiscounted merchandise returned which originally cost $1,700. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? A. $10,500 B. $30,772 C. $7,972 D. $31,400
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter9: Sales And Purchases
Section: Chapter Questions
Problem 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...
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![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 of undiscounted
merchandise returned which originally cost $1,700. Gomez Co.
paid the invoice within the discount period. What is the amount of
gross profit earned by Abbey Co. on the above transactions?
A. $10,500
B. $30,772
C. $7,972
D. $31,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7baea6b-0669-4107-909a-f3c1515332a4%2F6e7d3e8d-d685-46e9-8d9e-7d6c8ab352c2%2Fmmpcfb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 of undiscounted
merchandise returned which originally cost $1,700. Gomez Co.
paid the invoice within the discount period. What is the amount of
gross profit earned by Abbey Co. on the above transactions?
A. $10,500
B. $30,772
C. $7,972
D. $31,400
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