Assume the same information as in BE5-11 and also that Gallant Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $730,000.

Determine the amounts to be reported for cost of goods sold and gross profit.

In BE5-11, Assume that Gallant Company uses a periodic inventory system and has these account balances: Purchases $450,000; Purchase Returns and Allowances $13,000; Purchase Discounts $8,000; and Freight-In $16,000. Determine net purchases and cost of goods purchased.