Exercise 4-21A (Static) Determining cost of goods sold: Periodic system (Appendix) LO 4-9 Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account tittes and balances were drawn from Tippah's records for Year 2; beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000; sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold. b. Prepare a multistep income statement