Ballard Company uses the perpetual inventory system. The company purchased $9,800 of merchandise from Andes Company under the terms 2/10, net/30. Ballard paid for the merchandise within 10 days and also paid $430 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $18,600 cash. What is the gross margin that resulted from these transactions

$8,566

Explanation:

The computation of the gross margin is shown below:

Purchase of inventory$9,800

Less: Purchase discount ($9,800 × 2%)  ($196)

Add: Freight paid$430

Total purchase made$10,034

Sales$18,600

Gross margin ($18,600 - $10,034)$8,566

We simply deduct the sales from the total purchase so that the gross margin amount could come

the best way to learn how to declare a major is to talk to a admissions office.