XYZ.com, being a startup, had a zero beginning inventory. They spent $425,000 on inventory items, receiving $12,000 for prompt payment and paying $10,000 for freight. Their closing inventory is $84,000. Determine the cost of goods sold and the closing entries for a periodic inventory. Prepare an income statement using your calculations. Show gross profit and net income. You will need the following information: Sales were $1,375,000.00 Administrative and sales expenses $225,000.00 Interest on debt is $97,000.00 Tax paid at 30%