The following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008: Merchandise inventory, July 1, 2007 . . . . . . . . . . . . $ 183,250 Merchandise inventory, June 30, 2008 . . . . . . . . . . 200,100 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,279,600 Purchases returns and allowances . . . . . . . . . . . . . . 41,200 Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500 Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000 Transportation in . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250 a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008