Jade Inc. sold merchandise for $15,000 that had a cost of $11,200. The terms of sale were FOB destination, 2/10, n/30. Jade records sales at the gross amount. Freight cost of $500 was paid in cash by Jade. The customer paid within the discount period. What is the gross margin for Jade Inc.? a. $3,800 b. $3,600 c. $3,700 d. $3,500
Jade Inc. sold merchandise for $15,000 that had a cost of $11,200. The terms of sale were FOB destination, 2/10, n/30. Jade records sales at the gross amount. Freight cost of $500 was paid in cash by Jade. The customer paid within the discount period. What is the gross margin for Jade Inc.? a. $3,800 b. $3,600 c. $3,700 d. $3,500
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....
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Gross margin is? Accounting
Transcribed Image Text:Jade Inc. sold merchandise for $15,000 that
had a cost of $11,200. The terms of sale were
FOB destination, 2/10, n/30. Jade records
sales at the gross amount. Freight cost of $500
was paid in cash by Jade. The customer paid
within the discount period. What is the gross
margin for Jade Inc.?
a. $3,800
b. $3,600
c. $3,700
d. $3,500
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