On January 1, JKR Shop had $530,000 of beginning inventory at cost. In the first quarter of the year, it purchased $1,670,000 of merchandise, returned $23,900, and paid freight charges of $38,400 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 30%, and the store had $2,080,000 of net sales (at retail) in the first quarter of the year