12. COST OF GOODS SOLD Prepare the Cost of Goods section of the income state August 31. Account balances, listed randomly, are as follows. Two points allowed per line; three (3) for correct COGS; five points (5) for format; total 30 points. ment for the fiscal year ending (2) are Freight In Purchases Discount 2,000 Inventory, 31 August 363,000 Purchases Returns and Allowances 19,000 $498,000 158,900 $7,500 Purchases Inventory, 1 Sept