Barstow Company Uses the Perpetual Inventory System

question 15

Multiple Choice

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:

• A)$6,910
• B)$7,000
• C)$8,000
• D)$6,750

---

Definitions:

Multinational Corporations

Large companies that operate and have assets in several countries, beyond their home country, to maximize global market presence.

National Labor Unions

Early labor organizations in various countries that sought to advocate for workers' rights and interests across multiple industries.

Government Regulations

Guidelines and rules established by governmental bodies designed to control and govern the practices and operations of various industries and sectors.

Economic Integration

A process whereby countries reduce trade barriers and coordinate monetary and fiscal policies to create a seamless economic region or market.