E-14-3A (L01) Cost of goods sold: $73,450 CALCULATION OF COST OF GOODS SOLD: PERIODIC INVENTORY SYSTEM Prepare the cost of goods sold section for Adams Gift Shop. The following amoun are known: Beginning merchandise inventory $27,000 Ending merchandise inventory 22,000 Purchases 78.000 Purchases returns and allowances 3,900 Purchases discounts 6,000 Freight-in 350