Question: Newark Company has provided the following information:
Cash sales, $510,000
Credit sales, $1,410,000
Selling and administrative expenses, $390,000
Sales returns and allowances, $96,000
Gross profit, $1,420,000
Increase in accounts receivable, $61,000
Bad debt expense, $39,000
Sales discounts, $49,000
Net income, $1,030,000
How much is Newark's cost of sales?
A. $500,000.
B. $294,000.
C. $355,000.
D. $394,000.