Barstow Company uses the perpetual inventory system. The company purchased $8,000 of merchandise from Andrews Company under the terms 2/10, net/30. Bartstow paid for the merchandise within 10 days and also paid $250 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $15,000 cash. The amount of gross margin for this merchandise is:

Question

Quizplus · Accepted Answer

Sales $15,000 - Cost of goods sold ($8,000 x 0.98 + $250) = $6,910 Gross margin

Barstow Company Uses the Perpetual Inventory System