Small Musical Shop uses the perpetual inventory system. On April 2, Small Musical sold merchandise for $50,000 to a customer on account with terms of 2/15, n/30. The allowance and returns on this sale amounted to $2,000 and $8,000, respectively. The inventory return was worth $4,320. The cost of goods sold was $27,000. On April 20, Small Musical received payment from the customer. Calculate the amount of gross profit.
Small Musical Shop uses the perpetual inventory system. On April 2, Small Musical sold merchandise for $50,000 to a customer on account with terms of 2/15, n/30. The allowance and returns on this sale amounted to $2,000 and $8,000, respectively. The inventory return was worth $4,320. The cost of goods sold was $27,000. On April 20, Small Musical received payment from the customer. Calculate the amount of gross profit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Small Musical Shop uses the perpetual inventory system. On April 2, Small Musical sold merchandise for $50,000 to a customer on account with terms of 2/15, n/30. The allowance and returns on this sale amounted to $2,000 and $8,000, respectively. The inventory return was worth $4,320. The cost of goods sold was $27,000. On April 20, Small Musical received payment from the customer. Calculate the amount of gross profit.
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