Question 1 - Gold Co. sold merchandise to Bronze Co. on account, $23,000, terms 2/15, net 45. The cost of the merchandise sold is $18,500. Gold Co. issued a credit memorandum for $2,500 for merchandise returned that originally cost $1,900. Bronze Co. paid the invoice within the discount period. What is the amount of net income earned by Gold Co. on the transactions?
Question 2 - Based on the following data, determine the cost of merchandise sold for October.
Merchandise Inventory, October 1 $ 98,560
Merchandise Inventory, October 31 102,330
Purchases 433,880
Purchases Returns & Allowances 12,760
Purchases Discounts 9,900
Transportation In 7,620