12. Daylight Company, a retail business uses a perpetual inventory system and lists its inventory for sale in the catalog at a $400 per unit selling price. During the first half of January Daylight made 4 sales of inventory (shown below) and all units sold had a historical cost to Daylight of $155 per unit.

14. Continue with the Daylight fact pattern in Q#12. Consider transaction #1, Assume further that on Jan. 11 the customer returned 25 units of inventory to Daylight. How much gross profit will Daylight report as a result of this transaction?

A) $86,405 B) $87,405 C) $86,307 D) $83,432 E) NOTA

Qty Trade Discount 2% Freight 400 Order Date 1-Jan 6-Jan 9-Jan 12-Jan Sales Discount 1/10, n/30 2/10, n/30 1/10, n/30 2/10, n/30 Date Customer Shipped Delivered Payment 4-Jan 9-Jan 14-Jan 8-Jan 11-Jan 18-Jan 10-Jan 14-Jan 16-Jan 14-Jan 20-Jan 21-Jan 3% Terms FOB Destination FOB Destination FOB Shipping Point FOB Shipping Point 550 460 865 2,275 * $1,000 of prepaid freight $1,000 of freight collect Qty Trade Discount 2% Freight 400 Order Date 1-Jan 6-Jan 9-Jan 12-Jan Sales Discount 1/10, n/30 2/10, n/30 1/10, n/30 2/10, n/30 Date Customer Shipped Delivered Payment 4-Jan 9-Jan 14-Jan 8-Jan 11-Jan 18-Jan 10-Jan 14-Jan 16-Jan 14-Jan 20-Jan 21-Jan 3% Terms FOB Destination FOB Destination FOB Shipping Point FOB Shipping Point 550 460 865 2,275 * $1,000 of prepaid freight $1,000 of freight collect