PharoahCompany commenced operations on July 1.PharoahCompany uses a periodic inventory system. During July,PharoahCompany was involved in the following transactions and events:

July 2

Purchased $14,300of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point.

3

Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers.

4

Paid $560of freight costs on July 2 shipment.

8

Sold merchandise for $3,000cash.

11

Paid Suppliers Inc. the full amount owing.

15

Sold merchandise for $6,500on account, 1/10, n/30, FOB shipping point.

25

Received full payment for the merchandise sold on July 15.

31

Pharoahdid a physical count and determined there was $9,700of inventory on hand.

can you tell me why 3468 is wrong for gross profit?