Solve gross profit for the month of march

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Reference no: EM132563169

A company has the following transactions during March:

March 3 Purchases inventory on account for $3,500, terms 2/10, n/30. March 5 Pays freight costs of $200 on inventory purchased on March 3. March 6 Returns inventory with a cost of $500.

March 12 Pays the full amount due on March 3 purchase.

March 29 Sells all inventory purchased on March 3 (less those returned on March 6) for $5,000 on account.

Question 1: Record all transactions, assuming the company uses a perpetual inventory system.

Question 2: Calculate gross profit for the month of March.

Reference no: EM132563169

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