FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Abbey Co. sold merchandise to Gomez Co. on account, $31,100, terms 2/15, net 45. The cost of the merchandise sold was $13,900. Abbey Co. issued

image text in transcribed
Abbey Co. sold merchandise to Gomez Co. on account, $31,100, terms 2/15, net 45. The cost of the merchandise sold was $13,900. Abbey Co. issued a credit memo for $3,400 for merchandise returned that originally cost $1,400. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Coon the above transactions? Ca. $30,478 . $27,146 c. $14,646 d. $3,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

How To Audit Anything The Pink Book Of Auditing Any Process

How To Audit Anything The Pink Book Of Auditing Any Process

Authors: R. Alakbarov

1st Edition

1520195575, 978-1520195575

More Books

Students also viewed these Accounting questions

Question

★★★★★
Zocco Corporation has an inventory conversion period of 75 days, an average collection period of 38 days, and a payables deferral period of 30 days. a. What is the length of the cash conversion cycle...

Answered: 1 week ago

Question

★★★★★
Refer to the Human Factors (Apr. 1990) study of recognizer accuracy at three levels (90%, 95%, and 99%) and vocabulary size at three levels (75%, 87.5%, and 100%) on the performance of a computerized...

Answered: 1 week ago

Question

★★★★★
1 What do we learn about the groups policy of paying suppliers? The Groups policy is to agree terms of transactions, including payment terms, with suppliers and, provided that suppliers perform in...

Answered: 1 week ago

Question

★★★★★
ABC, wholesale, customer profitability Ramirez Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Ramirez commented, "We apply ABC to...

Answered: 1 week ago

Question

★★★★★
Abbey Co. sold merchandise to Gomez Co. on account, $31,100, terms 2/15, net 45. The cost of the merchandise sold was $13,900. Abbey Co. issued a credit memo for $3,400 for merchandise returned that...

Answered: 1 week ago

Question

★★★★★
Required information [The following information applies to the questions displayed below) In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County...

Answered: 1 week ago

Question

★★★★★
Suppose a firm's net income is $200 and its profit margin is 10%. If the firm is working at 2/3 capacity, then full capacity sales is: A. $1,500 B. $3,000 O C. $1,000 D. $2,000 E. $2,500

Answered: 1 week ago

Question

★★★★★
Myrtle took out a 3-year loan for $2050 at a computer retailer to be paid back with monthly payments at a 12% APR, compounded monthly. If the loan offers no payments for the first 5 months, about how...

Answered: 1 week ago

Question

★★★★★
80. Phanatix, Inc. produces a variety of products that carry the logos of teams in the Southern Football League (SFL). The company recently paid the league $85,000 for the rights to market a popular...

Answered: 1 week ago

Question

★★★★★
5 A ship is being blown by a breeze with a force of 100 N on a bearing of 280, as on a bearing of 170, A tugboat holds it in place. Find the size and bearing of the shown in the diagram. It is pulled...

Answered: 1 week ago

Question

★★★★★
K In December, the first five transactions of Ander's Maid Service Company have been posted to the T-accounts. Prepare the journal entries that served as the sources for the five transactions....

Answered: 1 week ago

Question

★★★★★
Your company recently announced a new benefit. According to the announcement, the company will pay for expenses associated with taking job-related coursework or pursuing a program of study leading to...

Answered: 1 week ago

Question

★★★★★
Technology. Refer to Case

Answered: 1 week ago

Question

★★★★★
Because your companys educational benefit is new, you have several questions about what expenses are covered. Ideally, you would like the company to reimburse you for tuition, fees, books, meals,...

Answered: 1 week ago

Previous Question Next Question