Assume the perpetual inventory method is used.

1) Green Company purchased merchandise inventory that cost $16,600 under terms of 2/10, n/30 and FOB shipping point.

2) The company paid freight cost of $660 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 $24,700 cash and delivered under terms FOB shipping point with freight cost amounting to $460. The gross margin from these transactions of Green Company is

Multiple Choice

$8,432.

$7,312.

$7,772.

$7,972.