Using the following information, prepare the Cost of Goods Sold section of an income statement. Purchases Discounts

Question:

Using the following information, prepare the Cost of Goods Sold section of an income statement.
Purchases Discounts .............. $ 8,500
Merchandise Inventory, December 31 ....... 189,000
Purchases ................... 476,000
Merchandise Inventory, January 1 ........ 185,000
Purchases Returns and Allowances ......... 9,000
Freight In ................... 12,000