Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $378,100; Purchase Returns and Allowances $10,720; Purchase Discounts $6,056; and Freight-in $17,180. Tracy Company has beginning inventory of $58,470, ending inventory of $91,510, and net sales of $656,000.

Determine the amounts to be reported for cost of goods sold and gross profit.



Cost of goods sold

$


Gross profit

$

Start with your Purchases less purchase returns and allowances less discounts plus freight-in plus beginning inventory to get your inventory available less ending inventory to get Cost of Goods Sold.

Next start with Net Sales less Cost of Goods Sold equals Gross Profit.