QUESTION 19 Prepare the Cost of Goods Sold section of the income statement for the fiscal year ended December 31. The Company uses the periodic inventory system. Account balances, listed in alphabetical order, are as follows. Answer as precisely as you can. Do NOT enter commas or dollar signs when entering numbers. Less: Freight In Merchandise Inventory, December 31 (Year 1) Merchandise Inventory, January 1 (Year 1) Purchases Purchases Discounts Purchases Returns and Allowances $ 4,300 189,000 175,000 563,000 1,500 4,700 Cost of Goods Sold Net Purchases Add: Delivered Cost of Purchases Cost of Goods Available for Sale Less: Cost of Goods Sold