Total gross sales for the period include the following:

Credit card sales (discount 3%) $9,400

Sales on account (2/15, n/60) $12,000

Sales returns related to sales on account were $650. All returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. What amount will be reported on the income statement as net sales?