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During its first month of operations, Purrfect Pets purchased 6,100 bags of dog food at a cost of $2 a bag and sold all 6,100
During its first month of operations, Purrfect Pets purchased 6,100 bags of dog food at a cost of $2 a bag and sold all 6,100 bags of dog food on account with payment terms of 1/10,n/30 for $11 each. A total of 2,800 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 $220 were granted to customers whose dogs did not like the dog food. Required: a. Calculate the gross profit for the month. b. Calculate the gross profit percentage for the month. During its first month of operations, Purrfect Pets purchased 6,100 bags of dog food at a cost of $2 a bag and sold all 6,100 bags of dog food on account with payment terms of 1/10,n/30 for $11 each. A total of 2,800 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 $220 were granted to customers whose dogs did not like the dog food. Required: a. Calculate the gross profit for the month. b. Calculate the gross profit percentage for the month
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