Posted: September 23rd, 2016

Scratch Company uses the periodic inventory method. The following balances were drawn from the accounts of Scratch Company prior to the closing proces

Scratch Company uses the periodic inventory method. The following balances were drawn from the accounts of Scratch Company prior to the closing process:
Sales Revenue $3000
Beginning Inventory Balance $800
Purchases $2000
Transportation-in $100
Transportation-out $150
Purchases Discounts $50
Ending Inventory Balance $900

The amount of gross margin appearing on the income statement should be:

A. $900.
B. $1,050.
C. $1,950.
D. $2,850.