Ballard Company uses the perpetual inventory system. The company purchased $16,000 of merchandise from Andes Company...

 

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Ballard Company uses the perpetual inventory system. The company purchased $16,000 of merchandise from Andes Company under the terms 2/10, net/30. Ballard paid for the merchandise within 10 days and also paid $500 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $30,000 cash. What is the gross margin that resulted from these transactions? Ballard Company uses the perpetual inventory system. The company purchased $16,000 of merchandise from Andes Company under the terms 2/10, net/30. Ballard paid for the merchandise within 10 days and also paid $500 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $30,000 cash. What is the gross margin that resulted from these transactions?

Answer rating: 100% (QA)

To calculate the gross margin resulting from these transactions we need to determine the cost of the ... View the full answer