Ask Question
1 August, 19:24

Quality Jewelers uses the perpetual inventory system. On April 2, Quality sold merchandise for $50,000 to a customer on account with terms of 3/15, n/30. The allowances and returns on this sale amounted to $3,000 and $9,000, respectively. The cost of goods sold was $20,000. On April 20, Quality received payment from the customer. Calculate the amount of gross profit.

+1
Answers (1)
  1. 1 August, 19:36
    0
    The Gross profit is $18,000

    Explanation:

    In order to calculate the amount of gross profit we would have to make the following calculation:

    Gross Profit = Sale - Allowance - Sales Returns - Discount - Cost of Goods Sold

    Sale=$50,000

    Allowance=$3,000

    Sales Returns=$9,000

    Cost of Goods Sold = $20,000

    Discount. As the payment is done after the expiry of 15 days is discount is 0

    Gross Profit = $50,000 - $3,000 - $9,000 - 0 - $20,000

    Gross Profit = $18,000

    The Gross profit is $18,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Quality Jewelers uses the perpetual inventory system. On April 2, Quality sold merchandise for $50,000 to a customer on account with terms ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers