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

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Quizplus · Accepted Answer

Gross profit = Sales revenue - Cost of goods sold - Sales returns= $10,000 - $3,600 - $3,000= $3,400Less: Discount (3% of $10,000)= $300Gross profit = $3,400 - $300= $3,100