Wildhorse Company commenced operations on July 1. Wildhorse Company uses a periodic inventory system. During July, Wildhorse Company was involved in the following transactions and events: 

July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point. 

3 Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers. 

4 Paid $590 of freight costs on July 2 shipment. 

8 Sold merchandise for $3,000 cash. 

11 Paid Suppliers Inc. the full amount owing. 

15 Sold merchandise for $6,400 on account, 1/10, n/30, FOB shipping point. 

25 Received full payment for the merchandise sold on July 15. 

31 Wildhorse did a physical count and determined there was $10,100 of inventory on hand.

What was Wildhorse' gross profit for July?

Answer rating: 100% (QA)

Date Account Titles and Explanation Debit Credit Jul 1 Purchases 14600 Accounts Payable 14600 To rec... View the full answer