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Abbey Co. sold merchandise to Gomez Co. on account, $34,500, terms 2/15, net 45. The cost of the merchandise sold was $13,500. Abbey Co. issued
Abbey Co. sold merchandise to Gomez Co. on account, $34,500, terms 2/15, net 45. The cost of the merchandise sold was $13,500. Abbey Co. issued a credit memo for $2,500 for merchandise returned that originally cost $1,100. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions? Oa. $2,500 Ob. $33,810 Oc. $31,360 Od. $18,960 Merchandise is purchased for $6,000 on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $99. What is the cost of the merchandise if paid on September 12, assuming the discount is taken? Oa. $6,219 Ob. $6,099 Oc. $5,760 Od. $5,880 A retailer purchases merchandise with a catalog list price of $28,600. The retailer receives a 20% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period (Round your answer to the nearest dollar)? Oa. $22,422 Ob. $22,880 Oc. $28,600 Od. $23,452
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