Using the following data taken from Payton Company, which uses a periodic inventory system, prepare the "Cost of goods sold" section of the income statement for the year ended May 31.

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

Line Item Description	Amount	Amount
Cost of goods sold:
Cost of merchandise purchased:
Net Purchases:
Total cost of merchandise purchased	---
Cost of goods sold