The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

Dec.

3

Sheffield Ltd. sold goods to Bramble Corp. for $57,000, terms n/15, FOB shipping point. The inventory had cost Sheffield $30,200. Sheffields management expected a return rate of 3% based on prior experience.

7

Shipping costs of $760 were paid by the appropriate company.

8

Bramble returned unwanted merchandise to Sheffield. The returned merchandise has a sales price of $1,760, and a cost of $960. It was restored to inventory.

Sheffield received the balance due from Bramble.

Calculate the gross profit earned by Sheffield on the above transactions.

Gross Profit