Assume the perpetual inventory system is used.

1. 1) Green Company purchased merchandise inventory that cost $64,000 under terms of 2/10, n/30 and FOB shipping point.
2. 2) Green Company paid freight cost of $2,400 to have the merchandise delivered.
3. 3) Payment was made to the supplier on the inventory within 10 days.
4. 4) All of the merchandise was sold to customers for $94,000 cash and delivered under terms FOB destination with freight cost amounting to $1,600.

TB MC Qu. 04-81 What is the amount of gross margin that results...

What is the amount of gross margin that results from these transactions?

Multiple Choice

$31,280

$27,280

$28,880

$29,680