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

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.

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