Question
On December 22, 2019 Wildwood Company placed an order to purchase merchandise on account from seller Berry, Inc. Berry lists the merchandise in the online
On December 22, 2019 Wildwood Company placed an order to purchase merchandise on account from seller Berry, Inc. Berry lists the merchandise in the online catalog at a price of $8,000. Berry carries the goods on the balance sheet at a historical cost of $2,700. Wildwood is a good customer and was able to negotiate the following terms: (i) a 2.5% trade discount and (ii) payment terms of 1/10, n/30. The goods were shipped by Berry FOB shipping point on December 28, 2019 and were delivered to Wildwoods facility on January 4, 2020. On December 28 (i.e. at the time of shipment), Berry paid $240 of shipping cost and on January 4, (at the time of delivery) Wildwood returned $700 of merchandise to Berry (the returned items had an original cost to Berry of $280). Wildwood paid Berry in full on January 5. Consider the above facts and select the answer choice below that shows the gross profit reported by Berry Company for this transaction. (Round your final answers to the nearest $1). A. $4,327 B. $4,329 C. $4,609 D. None of the other 4 answer choices provided are correct. E. $4,322
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