Suppose Paul’s Hardware sells merchandise on account, terms 1/10, n/45, for $920 (the cost of the inventory is $550) on March 17, 2018. Paul’s Hardware later received $290 of goods (cost, $175) as sales returns on March 21, 2018. The customer paid the balance due on March 26, 2018. Assume the “net” method is used.

1. Calculate sales revenue for March 2018.

2. Calculate gross profit for March 2018.