Ballard Company uses the perpetual inventory system. The company purchased $9,500 of merchandise from Andes Company under the terms 2/10, net/30. Ballard paid for the merchandise within 10 days and also paid $400 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $18,000 cash. What is the amount of gross margin that resulted from these business events?

Multiple Choice

$8,500

$9,500

$8,290

$8,100