Assume the Perpetual Inventory System Is Used

Multiple Choice

Assume the perpetual inventory system is used.1) Green Company purchased merchandise inventory that cost $17,100 under terms of 4/10, n/30 and FOB shipping point.2) Green Company paid freight cost of $710 to have the merchandise delivered.3) Payment was made to the supplier on the inventory within 10 days.4) All of the merchandise was sold to customers for $25,700 cash and delivered under terms FOB destination with freight cost amounting to $510.What is the amount of gross margin that results from these transactions?

A) $9,284
B) $8,774
C) $8,064
D) $8,574