High-Quality Jewelers uses the perpetual inventory system. On March 3, High Quality sold merchandise for $50,000 to a customer on account with terms 4/15, n/30. The cost of goods sold was $20,000. On March 18, High Quality received payment from the customer. Calculate the amount of gross profit. A. $28,000 B. $30,000 C. $48,000 D. $20,000

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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What is the amount of gross profit on this accounting question?

High-Quality Jewelers uses the perpetual inventory system. On March
3, High Quality sold merchandise for $50,000 to a customer on account
with terms 4/15, n/30. The cost of goods sold was $20,000. On March
18, High Quality received payment from the customer.
Calculate the amount of gross profit.
A. $28,000
B. $30,000
C. $48,000
D. $20,000
Transcribed Image Text:High-Quality Jewelers uses the perpetual inventory system. On March 3, High Quality sold merchandise for $50,000 to a customer on account with terms 4/15, n/30. The cost of goods sold was $20,000. On March 18, High Quality received payment from the customer. Calculate the amount of gross profit. A. $28,000 B. $30,000 C. $48,000 D. $20,000
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