Using the following data taken from Payton Company, which uses a periodic inventory system:

Line Item Description	Amount
Inventory, June 1	$393,250
Inventory, May 31	380,100
Purchases	1,579,600
Purchases returns and allowances	81,200
Purchases discounts	16,500
Sales	2,060,000
Freight in	59,250

Determine the gross profit to be reported on the income statement for the year ended May 31 $_____

Prepare a schedule of the Cost of Goods Sold for the year ended May 31.

Line Item Description	Amount	Amount
Inventory, May 31		380100
Cost of merchandise purchased:
Purchases	1579600
Purchases returns and allowances	81200
Purchases discounts	16500
Net purchases	1481900
Freight in	59250
Total cost of merchandise purchased		1541150
Inventory available for sale	?
Inventory, June 1		393250
Cost of goods sold	?