On April 6, Year 1, J Company purchased $140,000 of merchandise inventory. Terms of the purchase...

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On April 6, Year 1, J Company purchased $140,000 of merchandise inventory. Terms of the purchase included a discount of 3/20, n/30 and the freight terms were FOB destination. Freight costs amounted to $4,600. J paid the account payable on April 24. J sold all inventory for $189,500. Required: Determine the amount of gross margin that I would report on its income statement. On April 6, Year 1, J Company purchased $140,000 of merchandise inventory. Terms of the purchase included a discount of 3/20, n/30 and the freight terms were FOB destination. Freight costs amounted to $4,600. J paid the account payable on April 24. J sold all inventory for $189,500. Required: Determine the amount of gross margin that I would report on its income statement.

Answer rating: 100% (QA)

Since all the inventories are sold in the given case there is no opening and closing inventory ... View the full answer