Assume that a company uses a periodic inventory system and has these account balancest Purchases $700,000, Purchase Returns and Allowances $30,000, Purchase Discounts $14,000, and Freight-in $35.000. Determine net purchases and cost of goods purchased. net purchases: $635,000, cost of goods purchased: $656,000 net purchases: $656,000. cost of goods purchased: $691,000 net purchases: $656,000, cost of goods purchased: $714,000 net purchases: $686,000, cost of goods purchased: $691,000