The following data were extracted from the accounting records of Bald Eagle Tire Company for the year ended April 30, 2020:

Estimated returns of current year sales 11,600

Inventory, May 1, 2019 380000

Inventory, April 30, 2020 415,000

Purchases 3,800,000

Purchase returns and allowances 150,000

Purchase discounts 80,000

Sales 5,850,000

Freight-in 16,600

Required:

a. Prepare the cost of goods sold section of the income statement for the year ended April 30, 2020. Use the periodic inventory system

b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2020.