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During its first month of operations, Purrfect Pets purchased 5,900 bags of dog food at a cost of $3 a bag and sold all 5,900
During its first month of operations, Purrfect Pets purchased 5,900 bags of dog food at a cost of $3 a bag and sold all 5,900 bags of dog food on account with payment terms of 1/10, n/30 for $10 each. A total of 2,500 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $200 were granted to customers whose dogs did not like the dog food.
Required:
- Calculate the gross profit for the month.
- Calculate the gross profit percentage for the month.
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