Listed below are some transactions for Pharoah Products Ltd$.,$ which uses a perpetual inventory system and reports under ASPE.

May Sold inventory on account to Sheridan Inc., terms $\frac{2}{10},\frac{n}{30}.$ Selling price $$22,400$; cost $$8,960.$

$2$

$3$ Received a portion of the inventory sold on the previous day because it was damaged and could never be sold in the

future. Selling price $$1,680$; cost $$672.$

$5$ Received a portion of the inventory sold on May $2$ that was in good condition and could be sold to other customers in the

future. Selling price $$2,720,$ cost $$1,344.$

$7$ Received payment in full from Sheridan Inc. for the amount due from the sale made on May $2.$

$($c$)$

Your answer is incorrect

Determine the Pharoah's gross profit based on the May transactions.

Gross profit $