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The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Swifty Ltd. sold goods to Blue Spruce Corp. for
The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.
Dec. | 3 | Swifty Ltd. sold goods to Blue Spruce Corp. for $81,700, terms n/15, FOB shipping point. The inventory had cost Swifty $43,500. Swiftys management expected a return rate of 3% based on prior experience. | |
7 | Shipping costs of $1,140 were paid by the appropriate company. | ||
8 | Blue Spruce returned unwanted merchandise to Swifty. The returned merchandise has a sales price of $2,520, and a cost of $1,340. It was restored to inventory. | ||
11 | Swifty received the balance due from Blue Spruce. |
Calculate the gross profit earned by Swifty on the above transactions. PLEASE DO NOT ANSWER: $37,020 or $35,645 as THESE ARE INCORRECT.
Gross Profit | $ |
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