On April 6, 2013, Mitchell Company purchased $70,000 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 $2,300. Mitchell paid the account payable on April 24. Mitchell sold all inventory for $94,750.
Required:
Determine the amount of gross margin Mitchell would report on the income statement.

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The Answer of On April 6, 2013, Mitchell Company purchased $70,000 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 $2,300. Mitchell paid the account payable on April 24. Mitchell sold all inventory for $94,750.
Required:
Determine the amount of gross margin Mitchell would report on the income statement.

On April 6, 2013, Mitchell Company Purchased $70,000 of Merchandise