Calculation of Cost of Goods Sold: Periodic Inventory System with Sales Returns and Allowances

The following amounts are known for Adams Gift Shop:

Beginning merchandise inventory	$24,000
Ending merchandise inventory	19,000
Purchases	80,000
Purchases returns and allowances	3,600
Purchases discounts	6,200
Freight-in	320

Assume the business makes estimates for sales returns and allowances at year-end. The balances for estimated returns inventory are shown.

Beginning estimated returns inventory	$2,200
Ending estimated returns inventory	1,500

Prepare the cost of goods sold section of the income statement.

Adams Gift Shop Income Statement For Year Ended December 31, 20--

Cost of goods sold:
Cost of goods purchasedGoods available for saleMerchandise inventory, beginningMerchandise inventory, ending		$- Select -
Cost of goods soldEstimated returns inventory, beginningEstimated returns inventory, endingPurchases		- Select -	$- Select -
Goods available for saleMerchandise inventory, endingPurchases discountsPurchases		$- Select -
Less: Goods available for saleLess: Merchandise inventory, beginningLess: Purchases returns and allowancesLess: Purchases	$- Select -
Less: Freight-inLess: Merchandise inventory, beginningLess: Purchases discountsLess: Purchases	- Select -	- Select -
Goods available for saleMerchandise inventory, beginningMerchandise inventory, endingNet purchases		$- Select -
Add: Cost of goods purchasedAdd: Freight-inAdd: Purchases discountsAdd: Purchases returns and allowances		- Select -
Cost of goods purchasedCost of goods soldMerchandise inventory, beginningMerchandise inventory, ending			- Select -
Cost of goods purchasedCost of goods soldGoods available for saleNet purchases			$- Select -
Less: Goods available for saleLess: Merchandise inventory, beginningLess: Merchandise inventory, endingLess: Net purchases		$- Select -
Less: Estimated returns inventory, beginningLess: Estimated returns inventory, endingLess: Goods available for saleLess: Net purchases		- Select -	- Select -
Cost of goods sold				$fill in the blank 26