Question 7) Assume that Hogsmeade Co. uses a periodic inventory system and has these account balances: Purchases \$735,000; Purchase Retums and Allowances \$112,300; Purchase Discounts \$61,600; Freight-In $33,300, Beginning Inventory $75,000, Net Sales $1,245,238, and Ending Inventory $50,000. Instructions (no color required): A. Determine Net Purchases and Cost of Goods Purchased. B. Determine Cost of Goods Sold and Gross Profit