On November 1, 2015, Wrenns Martch Sold Merchandise for $10,000

question 120

Multiple Choice

On November 1, 2015, Wrenns Martch sold merchandise for $10,000, FOB destination, with payment terms of 3/10, n/40. Sales returns on this sale amounted to $3,000. Wrenns received payment for the balance on November 10, 2015. The cost of goods sold was $3,600. Calculate the amount of gross profit from the transaction.

• A)$1,800
• B)$3,190
• C)$1,320
• D)$6,790

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Definitions:

Genuinely Agreed

Describes a situation where parties involved in an agreement or contract have a mutual understanding and acceptance of the terms without duress or deception.

Unilateral Mistake

A mistake that occurs when one party to a contract is mistaken as to a material fact.

Relief

Aid or assistance offered to alleviate hardship or distress in various contexts, such as financial relief or emergency relief efforts.

Unilateral Mistake

A misunderstanding or error made by one party in a contract, which does not necessarily void the contract unless it significantly affects the terms.