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Abbey Co. sold merchandise to Gomez Co. on account, $25,000, terms 2/15, net 45 . The cost of the goods sold was $15,101. Abbey Co.
Abbey Co. sold merchandise to Gomez Co. on account, $25,000, terms 2/15, net 45 . The cost of the goods sold was $15,101. Abbey Co. issued a credit memo for $3,000 for merchandise returned that originally cost $1,214. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? a. $7,673 b. $10,613 c. $3,000 d. $13,887
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