Royal company uses the periodic inventory method. The following balances were drawn from the accounts of royal company prior to the closing process:

The amount of gross margin appearing on the income statement should be:

hod. The following balances were Sales Revenue Beginning Inventory Balance Purchase Transportation-in Purchases Discounts Ending Inventory Balance 3,750 1,000 $ 2,500 125 1,125 The amount of gross margin appearing on the income statement should be: o $1,300. O $1,125 O $2.450. O $3,550