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Pam's Creations had the following sales and purchase transactions during Year $2.$ Beginning inventory

consisted of $240$ items at $$100$ each. The company uses the FIFO cost flow assumption and keeps perpetual

inventory records.

b$.$ Calculate the gross margin Pam's Creations would report on the Year $2$ income statement. $($Amounts to be deducted should

be indicated with a minus sign.$)$

Answer is complete but not entirely correct.