. Doichland Company is a retailer that uses perpetual inventory system. The following information about the companys April transaction is available:

i. The company had inventory worth $8,700 on April 1. Cash on the same day was $88,000.

ii. The company made sales of $500,000 for the month of April. The customers did not like the quality of few products sold by Doichland Company, thus inventories worth $5,800 were returned to Doichland Company.

iii. During the month, Doichland Company purchased inventories worth $56,000 (terms: FOB Shipping point, 2/10, n/30). The freight cost was $1,000. Inventories worth $2,000 were returned to the seller.

iv. Doichland Company sold some old non current assets for a gain of $3,400.

v. The owner of the company withdrew $1,500 for personal use. vi. At the end of the month Doichland Company again purchased new inventories worth $10,000 (terms: FOB Destination; 2/10, n/45). At the end of the month the total value of inventory on hand was $32,000.

Required : a. Calculate the Gross profit for the month of April, for Doichland Company. (12 marks)