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Assume the perpetual inventory method is used. 1) Vernon Company purchased merchandise inventory that cost $19,500 under terms of 2/10, n/30 and FOB shipping point.
Assume the perpetual inventory method is used. |
1) | Vernon Company purchased merchandise inventory that cost $19,500 under terms of 2/10, n/30 and FOB shipping point. |
2) | The company paid freight cost of $1,135 to have the merchandise delivered. |
3) | Payment was made to the supplier within 30 days. |
4) | All of the merchandise was sold to customers on account for $30,150 and delivered under terms FOB shipping point with freight cost amounting to $1,100. |
The gross margin from these transactions of Vernon Company is |
A)$9,515
B)$10,650
C)None of these
D)$8,415
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