I am having a tough time in figuring out how to calculate the purchase discounts for COGS. How did they get $857,500? I have put a star and a question mark on the answer for #1. please see attached and advise. thank you!!

Perpetual system w HBO Johnson co. began year 25,000 units of its only product. The units cost sa each. Co uses a perpetual hventory system & Pifo cost method, following hansactions purchased 125 #bo add units e cost of $10.00 per unit Terms purchase were 310, n 30,6 70% of purchases were paid for within 10 day discount period. Co uses gross method to record purchase discounts merch, was purchased forb Shipping point e freight charges of solib per unit paid. suppliers for credit whnson was also given credit The units were detective e were returned a days after reerd, Soves for the year totaled 120000 units & Lloper urut. on Dec 28, Johnson purchased 6.500 addant, unitses leach. The goods were shipped f.ob destination sarnved @ Johriston's warehouse on Jan. 4 the following year. e) 27,500 units were on hand end of the year read 1) determine ending inventury BC0650 end of the year even though speerhudates for purchases & sales of inventory are not given, amts for ending inventory & COGS under Fift are same using calculators under a periodic or perpetual inventry system. We calculate FiFo os fillows): See next page Perpetual system w HBO Johnson co. began year 25,000 units of its only product. The units cost sa each. Co uses a perpetual hventory system & Pifo cost method, following hansactions purchased 125 #bo add units e cost of $10.00 per unit Terms purchase were 310, n 30,6 70% of purchases were paid for within 10 day discount period. Co uses gross method to record purchase discounts merch, was purchased forb Shipping point e freight charges of solib per unit paid. suppliers for credit whnson was also given credit The units were detective e were returned a days after reerd, Soves for the year totaled 120000 units & Lloper urut. on Dec 28, Johnson purchased 6.500 addant, unitses leach. The goods were shipped f.ob destination sarnved @ Johriston's warehouse on Jan. 4 the following year. e) 27,500 units were on hand end of the year read 1) determine ending inventury BC0650 end of the year even though speerhudates for purchases & sales of inventory are not given, amts for ending inventory & COGS under Fift are same using calculators under a periodic or perpetual inventry system. We calculate FiFo os fillows): See next page