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Abbey Co. sold merchandise to Gomez Co. on account, $27,500, terms 2/15, net 45. The cost of the goods sold was $14,576. Abbey Co. issued
Abbey Co. sold merchandise to Gomez Co. on account, $27,500, terms 2/15, net 45. The cost of the goods sold was $14,576. Abbey Co. issued a credit memo for $3,300 for merchandise returned that originally cost $1,159. 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.$13,417
b.$3,300
c.$10,299
d.$13,533
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