Marketing and advertising costs	$54,000
Merchandise inventory, January 1, 2017	92,000
Shipping of merchandise to customers	2,000
Depreciation on Store Fixtures	9,000
Purchases	523,000
General and administrative costs	70,000
Merchandise inventory, December 31, 2017	109,000
Merchandise freight-in	22,000
Purchase returns and allowances	20,000
Purchase discounts	20,000
Revenues	630,000

The following data are for

MeedMeed

Retail Outlet Stores. The account balances (in thousands) are for

20172017.

LOADING...

(Click the icon to view the data.)

Requirements

1.	Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2.	Prepare the income statement for 20172017.

Requirement 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.

(a) Begin by completing the schedule of cost of goods purchased.

Meed Retail Outlet Stores
Schedule of Cost of Goods Purchased
For the Year Ended December 31, 2017 (in thousands)
Purchases
Add:
Deduct:
Cost of goods purchased