Gross Profit During the current year, merchandise is sold for $186,700 cash and $398,200 on account. The cost of merchandise sold is $421,100. What is the amount of the gross profit? Purchases Transactions Xanadu Company purchased merchandise on account from a supplier for $6,400, terms 1/10, n/30. Xanadu Company returned $1,200 of the merchandise and received full credit. a. If Xanadu 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. $ b. What account is credited by Xanadu Company to record the return