July $1$ Purchased merchandise from Zhang Company for $$7,400$ under credit terms of $\frac{1}{15},\frac{n}{30},$ FOB shipping point, invoice dated

July $1.$

July $2$ Sold merchandise to Knight Company for $$1,600$ under credit terms of $\frac{2}{10},\frac{n}{60},$ FOB shipping point, invoice dated July $2.$

The merchandise had cost $$960.$

July $3$ Paid $$405$ cash for freight charges on the purchase of July $1.$

July $8$ Sold merchandise that had cost $$1,900$ for $$3,100$ cash.

July $9$ Purchased merchandise from Taylor Company for $$2,900$ under credit terms of $\frac{2}{15},\frac{n}{60},$ FOB destination, invoice dated July

July $11$ Returned $$600$ of merchandise purchased on July $9$ from Taylor Company and debited its account payable for that amount.

July $12$ Received the balance due from Knight Company for the invoice dated July $2,$ net of the discount.

July $16$ Paid the balance due to Zhang Company within the discount period.

July $19$ Sold merchandise that cost $$1,800$ to Wright Company for $$2,600$ under credit terms of $\frac{2}{15},$ n$/60,$ FOB shipping point,

invoice dated July $19.$

July $21$ Gave a price reduction $($allowance$)$ of $$500$ to Wright Company for merchandise sold on July $19$ and credited Wright's accounts

receivable for that amount.

July $24$ Paid Taylor Company the balance due, net of discount.

July $30$ Received the balance due from Wright Company for the invoice dated July $19,$ net of discount.

July $31$ Sold merchandise that cost $$5,000$ to Knight Company for $$8,400$ under credit terms of $\frac{2}{10},$ n$/60,$ FOB shipping point,

invoice dated July $31.$

Prepare a multiple$-$step income statement through the calculation of gross profit.