During the current year, merchandise is sold for $152,300 cash and $487,200 on account. The cost of the goods sold is $454,000. What is the amount of the gross profit? $_________

Purchases Transactions

Rolfes Company purchased merchandise on account from Springhill Company for $10,100, terms 2/10, n/30. Rolfes returned merchandise with an invoice amount of $2,500 and received full credit.

a. If Rolfes Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. $fill in the blank 1

b. What account is debited by Rolfes Company to record the return?

• Accounts Payable-Springhill Company
• Accounts Receivable
• Cash
• Merchandise Inventory
• Purchases
• Sales
• Sales Returns and Allowances