M Wholesale Company began the year with merchandise inventory of $5,000. During the year, M purchased $93,000

Question:

M Wholesale Company began the year with merchandise inventory of $5,000. During the year, M purchased $93,000 of goods and returned $6,600 due to damage. M also paid freight charges of $1,200 on inventory purchases. At year-end, M's ending merchandise inventory balance stood at $17,200. Assume that M uses the periodic inventory system. Compute M's cost of goods sold for the year.