Quality Jewelers Uses the Perpetual Inventory System

Multiple Choice

Quality Jewelers uses the perpetual inventory system.On April 2,Quality sold merchandise for $50,000 to a customer on account with terms of 3/15,n/30.The allowances and returns on this sale amounted to $3,000 and $9,000,respectively.The cost of goods sold was $20,000.On April 20,Quality received payment from the customer.Calculate the amount of gross profit.

A) $38,000
B) $20,000
C) $18,000
D) $16,500