The Soft Company Has Provided the Following Information

Multiple Choice

The Soft Company has provided the following information:
Allowance for doubtful accounts increased $19,000 and accounts receivable increased $390,000 during the year.
Accounts written off as uncollectible totaled $20,000.
Net sales totaled $2,700,000.
The gross profit percentage was 40%.
Sales discounts were $100,000.
How much was Soft's gross profit?

A) $1,040,000
B) $1,072,400
C) $1,032,400
D) $1,080,000