Cost of merchandise sold Identify the errors in the following schedule of the cost of merchandise sold for the year ended May 31, 2016:

Cost of merchandise sold:

Merchandise inventory, May 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . $ 105,000 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,110,000 Plus: Purchases returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . $55,000 Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 85,000 Gross purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,195,000 Less freight in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000 Cost of merchandise purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,173,000 Merchandise available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,278,000 Less merchandise inventory, June 1, 2015 . . . . . . . . . . . . . . . . . . . . . . 91,300 Cost of merchandise sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,186,700 Appendix