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Assume Beta Company uses the perpetual inventory method and engaged in the following transactions: 1) Purchased $12,000 of merchandise on account under terms 3/10, n/30. 2) Returned $1,200 (list price) of merchandise to the supplier before payment was made. 3) Paid the account payable within the discount period. 4) Sold the merchandise for $15,600 cash. The amount of gross margin from the four transactions is: a. $5,160. b. $3,276. c. $5,124. d. $3,600.

Assume Beta Company uses the perpetual inventory method and engaged in the following transactions: 1) Purchased $12,000 of merchandise on account under terms 3/10, n/30. 2) Returned $1,200 (list price) of merchandise to the supplier before payment was made. 3) Paid the account payable within the discount period. 4) Sold the merchandise for $15,600 cash. The amount of gross margin from the four transactions is: a. $5,160. b. $3,276. c. $5,124. d. $3,600.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume Beta Company uses the perpetual inventory method and engaged in the following transactions: 1) Purchased $12,000 of merchandise on account under terms 3/10, n/30. 2) Returned $1,200 (list price) of merchandise to the supplier before payment was made. 3) Paid the account payable within the discount period. 4) Sold the merchandise for $15,600 cash. The amount of gross margin from the four transactions is: a. $5,160. b. $3,276. c. $5,124. d. $3,600.
Transcribed Image Text:Assume Beta Company uses the perpetual inventory method and engaged in the following transactions: 1) Purchased $12,000 of merchandise on account under terms 3/10, n/30. 2) Returned $1,200 (list price) of merchandise to the supplier before payment was made. 3) Paid the account payable within the discount period. 4) Sold the merchandise for $15,600 cash. The amount of gross margin from the four transactions is: a. $5,160. b. $3,276. c. $5,124. d. $3,600.
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