[The Following Information Applies to the Questions Displayed Below

question 5

Multiple Choice

[The following information applies to the questions displayed below.]

Assume the perpetual inventory system is used.

1) Green Company purchased merchandise inventory that cost $64,000 under terms of 2/10, n/30 and FOB shipping point.
2) Green Company paid freight cost of $2,400 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 $94,000 cash and delivered under terms FOB destination with freight cost amounting to $1,600.

-What is the amount of gross margin that results from these transactions?

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

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Definitions:

Psychologists

Professionals specializing in the study of the mind and behavior, working in fields such as clinical, counseling, and cognitive psychology.

Whites

Typically refers to individuals of European descent; however, the definition can vary by context and geographical location.

Alcoholics

People who suffer from alcoholism, a chronic disease characterized by uncontrolled drinking and obsession with alcohol.

Psychologically Vulnerable

Individuals who are more likely to suffer from psychological distress or disorders due to their mental health state or external circumstances.