7) The following information is in alphabetical order. Use it to calculate cost of goods sold for the year. Also explain the steps you took to obtain the correct answer: Freight-in Inventory, December 31 Inventory, January 1 Purchase Allowances Purchase Discounts Purchases Sales Sales Returns $ 3,500 61,750 76,000 8,000 9,100 111,000 254,000 25,500 COST OF GOODS SOLD: Explanation