1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IRINA_888 [86]
3 years ago
6

During its first month of operations, Purrfect Pets purchased 6,100 bags of dog food at a cost of $6 a bag and sold all 6,100 ba

gs of dog food on account with payment terms of 2/10, n/30 for $10 each. A total of 2,400 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. Required: Calculate the gross profit for the month. Calculate the gross profit percentage for the month
Business
1 answer:
Otrada [13]3 years ago
3 0

Answer:

Gross Profit     $23720  

Gross profit percentage 39.323%

Explanation:

The discounts allowed are subtracted from the sales .Also the sales allowances are deducted in the income statement.

Purrfect Pets

Sales units 6100

Sales Price $10

Sales                                                                          $ 24000

Less Sales Discounts (2% of 10) *2400                       (480)

Sales                                                                           $ 23520

Add Sales without discount (6100-2400)*10              $37000

Total Sales                                                                   $ 60520

Less Sales Allowances                                                 (200)

Net Sales                                                                      $ 60320

Less Purchases (6100* 6)                                            $ 36600

Gross Profit                                                                     $23720                  

Gross profit percentage= Gross Profit /Sales *100 %

Gross profit percentage= $23720    / $ 60320* 100%= 39.323%

                                         

You might be interested in
Over the first four years of a company's life, it earned the following net income (loss): $10,000; $5,000; $6,000, and ($4,000).
aleksandrvk [35]

Answer:

$700

Explanation:

Total earnings in 4 years

= 10000 + 5000 + 6000 - 4000

= $17,000

Ending retained earnings after 4 years

= $14,200

Total amount paid out as dividend in 4 years

= 17000 - 14200

= $2,800

Average amount of dividends paid per year

= $2,800/4

= $700

7 0
3 years ago
Programming languages used to create artificial intelligence and expert system applications are often called _____
SSSSS [86.1K]
<span>Programming languages used to create artificial intelligence and expert system applications are often called fifth generation languages. This programming language works by solving using the restrictions given to the program unlike the conventional method of using an algorithm developed by a programmer.</span>
8 0
3 years ago
What does the underlined sentence reveal about grandma?
marin [14]
The answer to this question will be C
7 0
3 years ago
Read 2 more answers
What time periods are available for the columns of a balance sheet?
kap26 [50]
Idk why would you ask
4 0
3 years ago
Identify the type of business writing for each description.
Westkost [7]
There are four types of businesses organisation. Sole trader is owned by one person and he makes all the decisions, and earns profit and bears the loss himself. A partnership is owned by 2 or more people and they help each other. The profit and loss is divided between them.
4 0
3 years ago
Other questions:
  • Briana Foods Inc., a manufacturer and distributor of grocery products, uses online recruiting for sales personnel.On its Website
    7·1 answer
  • Managerial accounting is affected any time money either leaves or comes into the company.
    9·1 answer
  • Jacob wants to buy three pairs of socks that normally sell at four pairs for $4.19. what is the first step jacob would use to ca
    11·1 answer
  • Four ways in which the kruger national park combats rhino poaching
    10·1 answer
  • In an economy with population growth at rate n, the change in capital stock per worker is given by the equation:_______.
    15·1 answer
  • Thomas has started a new business venture for which he has been using highly economical resources, such as the market research d
    8·1 answer
  • A situation that arises when all alternative choices or behaviors have been deemed undesirable because of the potentially negati
    5·1 answer
  • If the adjustment for accrued expenses is not recorded a.net income will be understated. b.revenues will be understated. c.net i
    8·2 answers
  • You find that the bid and ask prices for a stock are $10.25 and $10.30, respectively. If you purchase or sell the stock, you mus
    10·1 answer
  • Fill in the blanks: direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!