During its first month of operations, Perfects Pets purchased 6,300 bags of dog food at a cost
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Question:
During its first month of operations, Perfects Pets purchased 6,300 bags of dog food at a cost of $3 a bag and sold all 6,300 bags of dog food on account with payment terms of $ 1/10, net 30 for $10 each. A total of 2,000 of these bags were sold to customers who paid within the discount period; the other customers paid after the discount period had ended. Sales allowances totaling $200 were granted to customers whose dogs did not like the dog food.
a. Calculate the gross profit for the month
b. Calculate the gross profit percentage for the month.
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
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