Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual inventory system. 1) The company purchased $12,900 of merchandise on account under terms 2/10, n/30. 2) The company returned $1,600 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 $19,600 cash. What is the gross margin that results from these four transactions?

Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual irventory system. 1) The company purchased $12,900 of merchandise on account under terms 20,n/30. 2) The company returned $1,600 of merchandise to the supplier before payment was made. 3) The labdity was paid within the discount period. 4) All of the merchandise purchased was sold for $19,600 cosh. What is the gross margin that results from these four transactions