Chen’s Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below:

Sales....................................$175,000

Purchases...........................90,000

Inventory (beginning).......23,000

Inventory (ending).............17,000

Purchase returns and allowances..........3,000

Purchase discounts............7,000

Transportation-in...............4,000

Sales discounts...................8,000

Sales returns and allowances.................5,000

Refer to the account information for Chen’s Department Store.

1. Calculate Chen’s net sales.

a. $162,000

b. $167,000

c. $170,000

d. $175,000

2. Refer to the account information for Chen’s Department Store Calculate Chen’s cost of goods purchased

a. $ 84,000

b. $ 90,000

c. $ 103,000

d. $ 117,000