Assume the perpetual inventory method is used.
- 1) The company purchased $12,900 of merchandise
on account under terms 3/10, n/30.
- 2) The company returned $2,400 of merchandise to the supplier before payment was made.
- 3) The liability was paid within the discount period.
- 4) All of the merchandise purchased was sold for $19,800 cash.
The amount of gross margin from the four transactions is: