Determine whether the following accounts are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate whether it is added or deducted, and its normal balance. Accounts Added/Deducted Normal Balance

Determine whether the following accounts are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate whether it is added or deducted, and its normal balance. Assume that Sunland Company uses a periodic inventory system and has these ackunt balances: Purchases $423,700; Purchase Returns and Allowances $12,000; Purchase Discounts $6,700; and Freight-in $17,000. Sunland Company has beginning inventory of $59,700, ending inventory of $89,700, and net sales of $654,600. Determine the amounts to be reported for cost of goods sold and gross profit. Cost of goods sold Gross profit Determine whether the following accounts are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate whether it is added or deducted, and its normal balance. Assume that Sunland Company uses a periodic inventory system and has these ackunt balances: Purchases $423,700; Purchase Returns and Allowances $12,000; Purchase Discounts $6,700; and Freight-in $17,000. Sunland Company has beginning inventory of $59,700, ending inventory of $89,700, and net sales of $654,600. Determine the amounts to be reported for cost of goods sold and gross profit. Cost of goods sold Gross profit