E 14-4A (LO1) Cost of goods sold: 573,850 CALCULATION OF COST OF GOODS SOLD: PERIODIC INVENTORY SYSTEM WITH SALES RETURNS AND ALLOWANCES Use the same information as provided in Exercise 14-3A, but assume the business makes estimates for sales returns and allow ances at year-end. The balances for estimated returns inventory are provided below Prepare the cost of goods sold section of the income statement. Beginning estimated returns inventory $2,000 Ending estimated returns inventory 1,600