21.) Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold was $24,500. Abbey Co. issued a credit memo for $3,600 for defective merchandise, which was not returned to Abbey. Gomez Co. paid the invoice within the discount period. What is the gross profit earned by Abbey Co. on these transactions? Select one: a. $10,500 b. $30,772 c. $6,272 d. $31,400   16.) The service fee charged by a bank is a reduction to the bank account balance and therefore should be listed as a debit entry on the bank statement. Select one: True False

The following are selected transactions of Molina Company. Molina sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 6 Sold merchandise on account to Dodson Company for $5,000, terms 2/10, n/30. Dodson Company returned merchandise with a sales price of $500 to Molina. Molina collected the amount due from Dodson Company from the March 1 sale. 15 Molina sold merchandise for $400 in its retail outlet. The customer used his Molina credit card. 31 Molina added 1.5% monthly interest to the customer's credit card balance. Prepare journal entries for the transactions above. (Ignore cost of goods sold entries and explanations.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation March 1 く Accounts Receivable Sales Revenue March 3 く Sales Returns and Allowances Accounts Receivable Debit Credit

A sale of merchandise on account for $12,000 is subject to an 8% sales tax. (a)  Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale  (b)  What is the amount of the sale?$fill in the blank 2 (c)  What is the amount of the increase to Accounts Receivable? If required, round your answers to nearest whole value.$fill in the blank 3 (d)  What is the title of the account in which the $960 (12,000 x 8%) is credited?Sales Tax Payable

23. Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500. The Batson Co. paid the invoice within the discount period. Prepare the entries that both Sampson and Batson Companies would record for the above.