Questions 41 and 42 are based on the following data:

Purchases $540,000

Beginning Merchandise Inventory 185,000

Purchase Returns and Allowances 50,000

Purchase Discounts 14,000

Freight In 18,000

Ending Merchandise Inventory 150,000

Net Sales Revenue950,000

1.Calculate the cost of goods sold for a merchandiser using the periodic inventory system .

A)$540,000

B)$529,000

C)$547,000

D)$829,000

2.Calculate Gross Profit

A)$421,000

B)$529,000

C)$410,000

D)None of the above.