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Abbey Co. sold merchandise to Gomez Co. on account, $31,500, terms 2/15, net 45. The cost of the goods sold was $13,671. Abbey Co. issued
Abbey Co. sold merchandise to Gomez Co. on account, $31,500, terms 2/15, net 45. The cost of the goods sold was $13,671. Abbey Co. issued a credit memo for $3,800 for merchandise returned that originally cost $1,085. 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) $12,586
B) $18,284
C) $14,560
D) $3,800
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