Abbey Co. sold merchandise to Gomez Co. on account, $37000, terms 2/15, net 45. The cost of the merchandise sold is $18000. Abbey Co. issued a credit memo for $4500 for merchandise returned that originally cost $1600. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?
Abbey Co. sold merchandise to Gomez Co. on account, $37000, terms 2/15, net 45. The cost of the merchandise sold is $18000. Abbey Co. issued a credit memo for $4500 for merchandise returned that originally cost $1600. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?
Allowance for Doubtful Accounts has a credit balance of $28000 at the end of the year, before adjustments. Sales for the year amounted to $1200000, and sales returns and allowances amounted to $124000. If uncollectible accounts expense is estimated at 2% of net sales, the amount of the appropriate
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