Abbey Co. sold merchandise to Gomez Co. on account, $35000, terms 1/15, net 45. The cost of the merchandise sold is $25000. Abbey Co. issued a credit memo for $3400 for merchandise returned that originally cost $3500. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?

During the current year, merchandise is sold for $53000 cash and for $119000 on account. The cost of merchandise sold is $112000. What is the amount of gross profit?

The maturity value of a $509000, 268-day, 9.2% note receivable is (two decimals):

List and define each of the five elements of internal control.

Allowance for Doubtful Accounts has a credit balance of $14000 at the end of the year, before adjustments. Sales for the year amounted to $1440000, and sales returns and allowances amounted to $107000. If uncollectible accounts expense is estimated at 1% of net sales, the amount of the appropriate adjusting entry will be (nearest whole dollar):

On January 1, DogMart Company purchased a two-year liability insurance policy for $41100 cash. The purchase was recorded to Prepaid Insurance. How much would be the January 31 amount recorded to expense (use two decimals):

Assume that three identical units of merchandise are purchased during October, as follows:

Units

Cost

October

5

Purchase

1

$ 5

12

Purchase

1

7

28

Purchase

1

9

Total

3

$21

Assume one unit is sold on October 31 for $15. Determine Cost of Merchandise Sold, Gross profit, and Ending Inventory under the FIFO method.