On April 6,2016,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 Gringot would report on the income statement.

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The Answer of On April 6,2016,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 Gringot would report on the income statement.

On April 6,2016,Gringot Company Purchased $140,000 of Merchandise Inventory