Purrfect Pets bought 6,000 bags of dog food at a cost of $5 a bag.Purrfect Pets sold 6,000 bags of dog food this month for $10 each;2,600 of these bags were sold to customers who took advantage of their 3% early payment terms.Twenty bags were returned by customers who did not take advantage of the early payment terms.
Calculate the gross profit and the gross profit percentage for Purrfect Pets,assuming dog food is the company's only product and that returned product had been opened so it could not be put back in inventory but the customers were given a full refund which was treated as a sales allowance.There was no beginning inventory of bags of dog food.

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The Answer of Purrfect Pets bought 6,000 bags of dog food at a cost of $5 a bag.Purrfect Pets sold 6,000 bags of dog food this month for $10 each;2,600 of these bags were sold to customers who took advantage of their 3% early payment terms.Twenty bags were returned by customers who did not take advantage of the early payment terms.
Calculate the gross profit and the gross profit percentage for Purrfect Pets,assuming dog food is the company's only product and that returned product had been opened so it could not be put back in inventory but the customers were given a full refund which was treated as a sales allowance.There was no beginning inventory of bags of dog food.

Purrfect Pets Bought 6,000 Bags of Dog Food at a Cost