Based on the following data, determine the cost of merchandise sold for July:

Increase in estimated returns inventory ...................................... $ 34,900

Merchandise inventory, July 1 ................................................ 190,850

Merchandise inventory, July 31 ............................................... 160,450

Purchases ....................................................................... 1,126,000

Purchases returns and allowances .............................................. 46,000

Purchases discounts .............................................................. 23,000

Freight in .......................................................................... 17,500