1. On December 1st, we bought merchandise on credit from Solo Suppliers for $ 480,000. We paid freight charges of $ 10,000 on this
2. On December 2nd, merchandise bought from Solo Suppliers for $ 4,500 was found defective while other merchandise bought for $ 12,000 was returned to Solo Suppliers. Solo suppliers have already told us not to pay for the defective merchandise.
3. On December 3rd, we sold merchandise for $ 590,000 cash. We paid $ 12,000 for delivery of the merchandise to the customers.
4. On December 4th, we sold merchandise on credit for $ 300,000.
5. On December 5th, we received merchandise from our credit customers which had been sold for $ 13,000
6. On December 5th, we paid Solo Suppliers their account receiving a 10% discount.
7. On December 6th, we received a cash payment from our credit customers allowing the 5% discount on account.

From the transactions and details above, prepare a Profit and Loss Statement clearly showing the cost of goods sold, the gross profit and the net profit.

Answer rating: 100% (QA)

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