Uses the perpetual inventory system-amount of gross margin

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Reference no: EM13866167

Barton Company uses the perpetual inventory system. The company purchased $13,000 of merchandise from Banks Company under the terms 2/10, net/30. Barton paid for the merchandise within 10 days and also paid $895 freight to obtain the goods under terms FOB shipping point. All of the merchandise purchased was sold for $18,600 cash. The amount of gross margin for this merchandise is:

A) $4,705

B) $4,965

C) $13,000

D) $5,600

Reference no: EM13866167

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