05 Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account-titles and balances were drawn from Tippah's records for Year 2: beginning balance in inventory, $24,400; purchases, $306,300; purchase returns and allowances, $12,500; sales, $720,000; sales returns and allowances, $6,250; freight-in, $1,800; and operating expenses, $51,000. A physical count indicated that $24,300 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold. b. Prepare a multistep income statement.