Janice Martin sells Avon products. This is the second year that she has operated the business. The beginning inventory on January 1 was $725. The ending inventory on December 31 was $1,125. Her records contain the following information regarding her sales and purchases. Calculate the cost of goods sold and gross profit for Ms. Martin's business.

Sales to Customers $5,497

Total Purchases $2,458

UPS Charges (receiving purchases) $ 375

Personal Use Items $ 625

Answer the following question based on the information listed above. What is the cost of goods sold for Janice Martin's Avon business?

a) $2,458

b) $1,808

c) $5,497

d) $3,689