A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year, $3,995; Freight-In, $583; Purchases, $13,847; Purchases Returns and Allowances, $4,011; Purchases Discounts, $260. The cost of merchandise purchased is equal to

a.$10,159

b.$14,706

c.$22,696

d.$13,847

Abbey Co. sold merchandise to Gomez Co. on account, $17,400, terms 2/15, net 30. The cost of the goods sold is $12,180. Abbey Co. issued a credit memo for $3,000 for merchandise returned that originally cost $2,100. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co. on the above transactions?

Answer rating: 100% (QA)

Answer 1 The correct answer is a 10159 Explanation Pu... View the full answer