Halifax Limited reported the following selected data for the year ended December 31, 2018: purchases $195,000; purchase returns and allowances $6,600; purchase discounts $20,400; freight in $5,250; freight out $11,250; beginning inventory $105,000; and ending inventory $120,000.

(a) Prepare the cost of goods sold section for Halifax in a multiple-step income statement.

(b) Explain how the remainder of Halifax's income statement would differ, if at all, if it used a perpetual inventory system.