On April 6, Year 1, Gringot Company purchased $140,000 of merchandise inventory. Terms of the purchase included a discount of 3/20, n/30 and the freight terms were FOB destination. Freight costs amounted to $4,600. Gringot paid the account payable on April 24. Gringot sold all inventory for $189,500.
Required:Determine the amount of gross margin that Gringot would report on its income statement.

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The Answer of On April 6, Year 1, Gringot Company purchased $140,000 of merchandise inventory. Terms of the purchase included a discount of 3/20, n/30 and the freight terms were FOB destination. Freight costs amounted to $4,600. Gringot paid the account payable on April 24. Gringot sold all inventory for $189,500.
Required:Determine the amount of gross margin that Gringot would report on its income statement.

On April 6, Year 1, Gringot Company Purchased $140,000 of Merchandise