Appendix EX 6-39 Cost of merchandise sold edertify the errors in the following schedule of the cost of merchandise sold for the year May : $ 105,000 $1,110,000 55,000 30,000 (22,000) Cost of merchandise sold: Merchandise inventory, May 31, 2018 Cost of merchandise purchased: Purchases Purchases returns and allowances. Purchases discounts Freight in Total cost of merchandise purchased. Inventory available for sale Merchandise inventory, June 1, 2017 Cost of merchandise sold before estimated returns Increase in estimated returns inventory Cost of merchandise sold ... 1,173,000 $1,278,000 91,300 $1,186,700 43,300 $1,230,000