Using the following data taken from Payton Inc. which uses a periodic inventory system to answer this question.

Merchandise inventory, June 1	$393,250
Merchandise 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

Prepare the cost of merchandise sold section of the income statement for the year ended May 31.

Payton Inc.
Partial Income Statement
For the Year Ended May 31
Cost of merchandise sold:
		$
Cost of merchandise purchased:
	$
Net purchases	$
Total cost of merchandise purchased
		$
Cost of merchandise sold		$