Darlington Company entered into the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased $14,000 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,500 of merchandise to the supplier before payment was made. 3) The liability was paid within the discount period. 4) All of the merchandise purchased was sold for $22,000 cash. What is the gross margin that results from these four transactions? Multiple Choice $11,710 $11,780