The following trial balance pertains to Benji’s Grocery as of January 1, Year 2:
Account                                                                             Title Beginning Balances
Cash .............................................................................................$64,000
Accounts receivable ...................................................................12,000
Merchandise inventory ..............................................................90,000
Accounts payable ..........................................................................7,500
Common stock .............................................................................89,000
Retained earnings .........................................................................69,500

The following events occurred in Year 2. Assume that Benji’s uses the periodic inventory method.
1. Purchased land for $30,000 cash.
2. Purchased merchandise on account for $230,000, terms 1/10, n/45.
3. Paid freight of $2,100 cash on merchandise purchased FOB shipping point.
4. Returned $8,600 of defective merchandise purchased in Event 2.
5. Sold merchandise for $186,000 cash.

6. Sold merchandise on account for $236,000, terms 2/10, n/30.
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.
8. Paid $28,500 cash for selling expenses.
9. Collected $156,000 of the accounts receivable from Event 6 within the discount period.
10. Collected $56,000 of the accounts receivable but not within the discount period.
11. Paid $17,100 of other operating expenses.
12. A physical count indicated that $48,300 of inventory was on hand at the end of the accounting period.

Required
Use the relevant information contained in the events to prepare a schedule of cost of goods sold and an income statement.