7. Newark Company has provided the following information: . Cash sales, $630,000 Credit sales, $1,530,000 Selling and administrative expenses, $510,000 e Sales returns and allowances, $108,000 Gross profift, $1,540,000 Increase in accounts receivable, $73,000 Bad debt expense, $51,000 . Sales discounts, $61,000 Net income, $1,030,000 How much is Newark's cost of sales? O $378,000 o $502,000 O $451.000. O $620.000