Assume the perpetual inventory method is used.

1. 1) The company purchased $12,400 of merchandise on account under terms 2/10, n/30.
2. 2) The company returned $1,900 of merchandise to the supplier before payment was made.
3. 3) The liability was paid within the discount period.
4. 4) All of the merchandise purchased was sold for $18,800 cash.

The amount of gross margin from the four transactions is:

Multiple Choice

• $8,510.
• $6,272.
• $8,548.
• $6,400.