On November 1,2012,Everett Janitorial Supply Sold Merchandise for $5,000,FOB Destination,2/10,n/30

question 75

Multiple Choice

On November 1,2012,Everett Janitorial Supply sold merchandise for $5,000,FOB destination,2/10,n/30.The merchandise cost $3,200.Everett paid transportation costs of $100.On November 6,2012,merchandise of $1,000 from the November 1 sale was returned.The returned merchandise had cost $600.Everett received payment for the balance of the sale on November 10,2012.
-If this were the only sales transaction of the period,what amount of Gross profit would be shown on the income statement?

• A) $2,400
• B) $1,800
• C) $1,320
• D) $3,920

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