Brief Exercise 5-10 Assume that Sheridan Company uses a periodic inventory system and has these account balances: Purchases $394,800; Purchase Returns and Allowances $10,400; Purchase Discounts $8,400; and Freight-in $16,500. Sheridan Company has beginning inventory of $56,700, ending inventory of $86,700, and net sales of $653,100. Determine the amounts to be reported for cost of goods sold and gross profit.