Identify the errors in the following schedule of the cost of merchandise sold for the year ended May 31, 2018:

Cost of merchandise sold:

Merchandise inventory, May 31, 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 105,000

Cost of merchandise purchased:

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,110,000...........

Purchases returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000...........

Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000...........

Freight in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  (22,000) ...........

Total cost of merchandise purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,173,000

Inventory available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,278,000

Merchandise inventory, June 1, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,300

Cost of merchandise sold before estimated returns . . . . . . . . . . . . . . . . . .$1,186,700

Increase in estimated returns inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,300

Cost of merchandise sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,230,000