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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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