1) The following account titles and balances were taken from the adjusted trial balance of King Co. for Year 2. The company uses the periodic inventory system. Account Title Sales returns and allowances Balance 3,000 Miscellaneous expense 6,000 2,000 Transportation-out Sales 740,000 Advertising expense 8000 Salaries expense 200,000 Transportation-in 1,000 Purchases 500,000 Interest expense 4,000 Merchandise inventory, January 1 130,000 Rent expense 40,000 Merchandise inventory, December 31 80,000 Purchase returns and allowances 3,000 Gain on sale of land 5,000 Utilities expense 2,500 Required Prepare a schedule to determine the amount of cost of goods sold. (Amounts to be deducted should be indicated with minus sign.) Answer A schedule to determine the amount of cost of goods sold King co Schedule of Cost of Goods Sold For the Year Ended December 31, Year 2