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Gross Profit During the current year, merchandise is sold for $100,000 cash and $505,400 on account. The cost of merchandise sold is $423,800. What is the amount of the gross profit? Purchases Transactions Rolfes Company purchased merchandise on account from a supplier for $11,100, terms 2/10, n/30. Rolfes Company returned $2,300 of the merchandise and received full credit. a. If Rolfes Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is credited by Rolfes Company to record the return? Accounts Payable Accounts Receivable Cash Delivery Expense Merchandise Inventory Purchases Sales Inventory Shrinkage Pulmonary Company's perpetual inventory records indicate that $152,390 of merchandise should be on hand on October 30, 2019. The physical inventory indicates that $138,670 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended October 30, 2019. Assume that the inventory shrinkage is a normal amount. Accounts Payable Accounts Receivable Cash Cost of Merchandise Sold Merchandise Inventory Purchases Purchases Discounts Purchases Returns and Allowances Sales Sales Discounts Sales Returns and Allowances