Barney Company uses the perpetual inventory system. Thecompany purchased $4,400

Question

Barney Company uses the perpetual inventory system. Thecompany purchased $4,400 of merchandise from Britain Company underthe terms 2/10, net/30. Barney paid for the merchandise within 10days and also paid $230 freight to obtain the goods under terms FOBshipping point. All of the merchandise purchased was sold for$9,080 cash. The amount of gross margin for this merchandiseis:
$4,368 $4,698 $4,878 $4,538 Barney Company uses the perpetual inventory system. Thecompany purchased $4,400 of merchandise from Britain Company underthe terms 2/10, net/30. Barney paid for the merchandise within 10days and also paid $230 freight to obtain the goods under terms FOBshipping point. All of the merchandise purchased was sold for$9,080 cash. The amount of gross margin for this merchandiseis: $4,368 $4,698 $4,878 $4,538 $4,368 $4,698 $4,878 $4,538

Explanation / Answer

Answer $ 4,538 Explanation InventoryPurchase               4,400 - discount received (2% of4,400)                                  88                                                   4,312 + Freight-in                                  230 InventoryCost                          4,542 Gross Margin Calculation Sales                         9,080 -cost of goods sold          4,542 GrossMargin                  4,538

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