The following merchandising transactions for XYZ Company during November:

Date	Transactions
Nov.1	XYZ purchases merchandise for R.O 1,500 on credit with terms 2/5, n/30, FOB shipping point.
Nov.3	XYZ paid R.O 90 cash for transportation cost for November 1 purchase.
Nov. 5th	XYZ paid cash for November 1 purchase.
Nov. 6th	purchased equipment on account for a purchase price of $30,000. In addition, XYZ paid $1,000 for transportation and $ 500 installation cost. The company will also have to pay $250 on monthly basis for regular maintenance.
Nov.7th	XYZ returns R.O 200 of defective merchandise purchased on November 1 for a cash refund.
Nov. 13th	XYZ sells merchandise for R.O 1,600 on credit with 2/10, n/60. The cost of the merchandise is R.O 880.
Nov. 16th	The customer returns merchandise from the November 13 transaction. The returned items sold for R.O 300 and cost R.O 150.
Nov. 20th	A full payment was received from the customer for Nov.13th credit sale.

the gross profit generated from November 13th sales is:

a.

None of the given options.

b.

$1,600

c.

$720

d.

$ 300

Under perpetual system, the company record the return of merchandise sold on November 13th by:

a.

Increasing Sales Return and Inventory.

b.

Debit Sales return & Allowance with $300

c.

All the given options.

d.

Decreasing Account receivable and COGS

The full amount received on November 20 for the previous credit sale is:

a.

$ 1,568

b.

None of the given options

c.

$1,274

d.

$ 1,600