Assume the perpetual inventory method is used.

1. 1) Green Company purchased merchandise inventory that cost $16,300 under terms of 4/10, n/30 and FOB shipping point.
2. 2) The company paid freight cost of $630 to have the merchandise delivered.
3. 3) Payment was made to the supplier within 10 days.
4. 4) All of the merchandise was sold to customers for $24,100 cash and delivered under terms FOB shipping point with freight cost amounting to $430.

The gross margin from these transactions of Green Company is

Multiple Choice

• $8,452.
• $7,392.
• $7,822.
• $8,022.