Exercise 5-12 Your answer is partially correct. Try again. The trial balance of Sandhill Co. at the end of its fiscal year, August 31, 2017, includes these accounts: Beginning Inventory $24,420; Purchases $153,780; Sales Revenue $192,600; Freight-In $9,900; Sales Returns and Allowances $3,880; Freight-Out $1,850; and Purchase Returns and Allowances $7,450. The ending Inventory is $24,800. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017. SANDHILL CO. Income Statement For the Year Ended August 31, 2017 Inventory, September 1, 2016 24,420 Purchases 153,780 Less Purchase Returns and Allowances 7,450 Net Purchases 146,330 Add Freight-In 9,900 Cost of Goods Purchased 153,780