On March 19, Zone Company placed an order to purchase merchandise with payment terms of 2/10, n/30. The goods were listed by Danger (the seller) in the companys catalog at a selling price of $3,300. The goods were carried on Dangers balance sheet at a historical cost of $1,200. Zone obtained an 8% trade discount. Danger shipped the goods to Zone on March 26 with shipping terms of FOB Destination and $350 of prepaid freight. The goods arrived at Zones facility on April 3. Zone inspected the goods, returned 1/3* and paid the balance due to Danger on April 7.

*returned units had an original cost to Danger of $400

How much cash will Zone pay to Danger on April 7? (Round your final answers to the nearest $1).

A.$1,984

B.$2,156

C.$2,334

D.$2,327

E.None of the answer choices provided are correct.

2. How much Gross Profit will Danger report on the company's income statement as a result of this transaction? (Round your final answers to the nearest $1).

3. How much Sales Revenue will Danger report on the company's income statement as a result of this transaction? (Round your final answers to the nearest $1).

4. On what date should Zone Company make the initial entry to record the merchandise purchased at the negotiated price?

A.	None of the answer choices provided are correct.
	B.	April 3
	C.	March 19
	D.	March 26
	E.	April 7