Use the Following to Answer Questions

question 57

Multiple Choice

Use the following to answer questions
Assume the perpetual inventory method is used.
1) Green Company purchased merchandise inventory that cost $64,000 under terms of 2/10,n/30 and FOB shipping point.
2) The company paid freight cost of $2,400 to have the merchandise delivered.
3) Payment was made to the supplier within 10 days.
4) All of the merchandise was sold to customers for $94,000 cash and delivered under terms FOB shipping point with freight cost amounting to $1,600.
-The gross margin from these transactions of Green Company is

• A)$31,280
• B)$27,280
• C)$28,880
• D)$29,680

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Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, making business operations more uniform across states.

Disproportion In Value

This term does not correspond to a specific, widely recognized legal or financial principle. NO.

Consideration

In contract law, this is something of value that is exchanged between parties entering into a contract, essential for the agreement to be legally binding.

Gratuitous Promises

Promises made without expecting anything in return, often lacking legal enforceability unless supported by formalities like a deed.