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PTER 5 Accounting for Merchandising Activities ysis Component: Company A and Company B are in similar industries. Comment on their gross profi cise 5-17 Components of cost of goods sold LO1, 2, 7 ng to Exhibit 5A.2, use the data provided to determine each of the missing numbers in the followin ns: a b C $16,250 Invoice cost of merchandise purchases..................." $44,000 $21,000 Purchase discounts...... 2,000 ? 325 Purchase returns and allowances............ 1,500 750 550 Cost of transportation-in..... ? 1,750 2,000 Merchandise inventory (beginning of period)............ 4,500 ? 3,500 Net cost of merchandise purchases ............." 44,700 19,750 . J Merchandise inventory (end of period).. 2,200 3,750 Cost of goods sold.... ? 20,800 17,065 2, 7 18 Journal entries to contrast the periodic and perpetual systems-perpetual and