Reference no: EM133085129

Question - During its first month of operations, Purrfect Pets purchased 5,200 bags of dog food at a cost of $4 a bag and sold all 5,200 bags of dog food on account with payment terms of 2/10, n/30 for $11 each. A total of 2,100 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 $220 were granted to customers whose dogs did not like the dog food. Calculate the gross profit for the month.