5 [10 points] The following transactions occured during 2014 for Southgate Inc. which uses a perpetual inventory system: (a) June 1: Southgate Inc. sold merchandise to ABC Inc. that cost $2,160 for $2,700 cash. (b) June 1: Southgate Inc. purchased merchandise from Courtland Corp. for 56,200 under credit terms of r60, FOB shipping point (c) June 2: Southgate Inc. purchased merchandise on credit from Allarco Inc., terms n/60, $7,700, FOB destination. (d) June 2: Paid $100 for freight charges for the June 1 purchase of merchandise. (e) June 5: Southgate Inc.'s merchandise was sold to United Corporation for $9,800 under credit terms of 2/15, n/90, FOB shipping point. The cost of the merchandise was 57,840 (f) June 10: Southgate Inc. sold marchandise to Northstar Corp. for $3,100 under credit terms of 2/10, n/60. FOB shipping point. The merchandise had cost $2,480 (g) June 10: After negotiations with Courtland Corp. concerning problems with the merchandise purchased on June 1, received a credit memorandum granting a price reduction of $500 (h) June 18: Northstar Corp, requested a price reduction on the June 10 sale because the merchandise did not meet specifications. Sent Northstar Corp. a credit memorandum for $500 to resolve the issue. (i) June 20: Received the balance due from United Corporation for the sale dated June 5, (j) June 20: Received the balance due from Northstar Corp. for the sale dated June 10. (k) July 31: Paid Courtland Corp. the balance due. (1) August 1: Paid Allarco Inc. the balance due. a) Calculate the net sales for Southgate Inc. during 2014 Net Sales b) Calculate the cost of goods sold for Southgate Inc. during 2014: Cost of Goods Sold