Assume the Perpetual Inventory System Is Used

question 146

Multiple Choice

Assume the perpetual inventory system is used.1) Green Company purchased merchandise inventory that cost $17,100 under terms of 4/10, n/30 and FOB shipping point.2) Green Company paid freight cost of $710 to have the merchandise delivered.3) Payment was made to the supplier on the inventory within 10 days.4) All of the merchandise was sold to customers for $25,700 cash and delivered under terms FOB destination with freight cost amounting to $510.What is the amount of gross margin that results from these transactions?

• A)$9,284
• B)$8,774
• C)$8,064
• D)$8,574

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Definitions:

Psychopathology

The study of abnormal behavior and psychological dysfunction.

Abnormal Behavior

A pattern of behavioral, emotional, or cognitive functioning that is atypical or significantly deviates from societal norms and may cause distress or impairment in functioning.

Study

The act of devoting time and attention to acquiring knowledge on an academic subject, especially through books.

Abnormal Behavior

Actions, thoughts, or emotions that are considered deviant from societal norms or personal distress, potentially indicative of a psychological disorder.