=+Identify the errors in the following schedule of cost of merchandise sold for the current year ended July 31, 2010:

Cost of merchandise sold:

Merchandise inventory, July 31, 2010 . . . . . . . . . . . . . . . $ 140,000 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $975,000 Plus: Purchases returns and allowances . . . . . . . . . . . . . $12,000 Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . 8,000 20,000 _______ ________ Gross purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $995,000 Less freight in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,500 ________ Cost of merchandise purchased . . . . . . . . . . . . . . . . . 981,500 __________ Merchandise available for sale . . . . . . . . . . . . . . . . . . . . $1,121,500 Less merchandise inventory, August 1, 2009 . . . . . . . . . . 125,000 __________ Cost of merchandise sold . . . . . . . . . . . . . . . . . . . . . . . . $ 996,500 __________ __________