During its first month of operations, Purrfect Pets purchased 6,600 bags of dog food at...
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Accounting
During its first month of operations, Purrfect Pets purchased 6,600 bags of dog food at a cost of $4 a bag and sold all 6,600 bags of dog food on account with payment terms of 2/10, n/30 for $11 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 $220 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.
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