Richmond Company Had the Following Information Taken from Its 20A

Multiple Choice

Richmond Company had the following information taken from its 20A adjusted trial balance: Sales,$200,000; Sales Discounts,$4,000; Beginning Inventory,$10,000; and Purchases,$140,000.A physical count of the merchandise on hand at the end of the year showed $20,000.Compute the gross margin (gross profit) that would appear in the income statement.

A) $62,000
B) $66,000
C) $70,000
D) $74,000