Question

1) The company purchased $12,100 of merchandise on account under terms 3/10, n/30. 2) The company returned $1,600 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $18,200 cash. What is the gross margin that results from these four transactions

Answer 1

$8,910

Step-by-step explanation:

Trading Account for the year

Sales $18,200

Less Cost of Sales

Purchases $12,100

Less Purchases Returns ($1,600)

Less Discounts Received ($12,100 x 10%) ($1,210) ($9,290)

Gross Profit $8,910

Conclusion :

thus, the gross margin that results from these four transactions is $8,910.