The trial balance of Rachel Company at the end of its fiscal year, August 31, 2007, includes these accounts: Merchandise Inventory $19,200; Purchases $144,000; Sales $190,000; Freight-in $8,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchase Returns and Allowances $5,000. The ending merchandise inventory is $25,000. Instructions Prepare a cost of goods sold section for the year ending August 31.