Suppose Bargain Hardware sells merchandise on account, terms 3 /10, n/30 , for $ 700 (the cost of the inventory is $ 280 ) on July 17, 2018. Bargain Hardware later received $ 100 of goods (cost, $ 40 ) as sales returns on July 21, 2018. The customer paid the balance due on July 26, 2018. Assume the "net" method is used.

1. Calculate sales revenue for July 2018.

2. Calculate gross profit for July 2018.