Question 7) Assume that Tract Company uses a periodic inventory system and has these account balances:

Purchases $995,000

Purchase Returns and Allowances $113,700

Purchase Discounts $58,900

Freight-In $44,400

Beginning Inventory $90,000

Net Sales $1,345,678

Ending Inventory $60,000.

Instructions: Determine Net Purchases and Cost of Goods Purchased. Determine Cost of Goods Sold and Gross Profit.