Smithson Products sells legal supplies to law firms. Gross sales in 2019 were $2,750,600 (Smithson's list price) on terms 3/10, n/30. Customers paid for $2,427,900 (Smithson's list price) of the merchandise within the discount period and the remaining $322,700 after the end of the discount period. Smithson records purchases and sales using the gross method to account for sales discounts.
Required:
1. Determine how much cash was collected from sales.
2. Assuming all payments were received before year end, how much sales revenue will be reported on the income statement?