During Its First Month of Operations,Purrfect Pets Purchased 6,000 Bags

Essay

During its first month of operations,Purrfect Pets purchased 6,000 bags of dog food at a cost of $5 a bag and sold all 6,000 bags of dog food on account with payment terms of 3/10,n/30 for $10 each.A total of 2,600 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:
a.Calculate the gross profit for the month.
b.Calculate the gross profit percentage for the month.