The OK Company, Inc. opened an agency in Makati in 2001. The following is a summary of the transactions of the agency: 66,000 55,800 Sales orders sent to home office Sales orders filed by home office in 2018 Freight in shipment to agency Collections, net of 2% discount Selling expenses paid from the agency working fund 1,320 47,628 3,384 Administrative expenses charged to agency 5% of ghoss sales Samples shipped to agency: Cost 3,600 Inventory, Dec. 31, 2018 1,320 The company maintains its gross margin on agency gross sales at 30% excluding the freight cost on shipments to agency. Agency's net income is