Murray’s Fashions sold merchandise for $38,000 cash during the month of July. Returns that month totaled $800. If the company’s gross profit rate is 40%, Murray’s will report monthly net sales revenue and cost of goods sold of

$38,000 and $22,800.

$37,200 and $14,880.

$37,200 and $22,320.

$38,000 and $22,320.