Based on the information that follows, prepare the cost of goods sold section of a multiple-step income

Question:

Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Merchandise Inventory, January 1, 20-- ....... $ 37,000
Purchases ................... 106,000
Purchases Returns and Allowances ........ 5,800
Purchases Discounts ............... 3,230
Freight-In .................... 700
Merchandise Inventory, December 31, 20-- ...... 31,000