Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year, $3,995; Freight-In, $583; Purchases, $13,847; Purchases

A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year, $3,995; Freight-In, $583; Purchases, $13,847; Purchases Returns and Allowances, $4,011; Purchases Discounts, $260. The cost of merchandise purchased is equal to

a.$10,159

b.$14,706

c.$22,696

d.$13,847

Abbey Co. sold merchandise to Gomez Co. on account, $17,400, terms 2/15, net 30. The cost of the goods sold is $12,180. Abbey Co. issued a credit memo for $3,000 for merchandise returned that originally cost $2,100. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?

Step by Step Solution

3.47 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Answer 1 The correct answer is a 10159 Explanation Pu... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

3rd Edition

978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856

More Books

Students also viewed these Accounting questions

Question

A car is parked on a steep hill. Identify the forces on the car?

Answered: 1 week ago