Cost of merchandise sold to customers $ 178,000 Merchandise inventory, beginning-of-year 25,846 Merchandise purchases, gross amount 182,486 Shrinkage on inventory as of year-end 800 Transportation-in for merchandise purchases 1,825 Cost of merchandise returned by customers (and restored to inventory) 2,000 Discounts received from suppliers on merchandise purchases 1,460 Returns to and allowances from suppliers on merchandise purchases 3,800