E4-4 Cost of merchandise sold and related items Obj 2 a. Cost of merchandise sold, $1,400,600 The following data were extracted from the accounting records of Wedgeforth Company for the year ended November 30, 2010: Merchandise inventory, December 1, 2009 Merchandise inventory, November 30, 2010 Purchases Purchases returns and allowances Purchases discounts Sales Freight in $ 210,000 185,000 1,400,000 20,000 18,500 2,250,000 14,100 Accounting for Merchandising Businesses 157 a. Prepare the cost of merchandise sold section of the income statement for the year ended November 30, 2010, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended November 30, 2010