Cost of goods sold Identify the errors in the following schedule of the cost of goods sold for the year ended May 31, 20Y5:

Cost of goods sold:

Inventory, May 31, 20Y5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 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 Inventory, June 1, 20Y4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (91,300)

Cost of goods sold before estimated returns . . . . . . . . . . . . . . . . . . . . $ 1,186,700 Estimated returns of this year’s sales . . . . . . . . . . . . . . . . . . . . . . . . . .  43,300 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,230,000.

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