Using the following information, answer the questions.

Net sales $198,000

Purchases $92,000

Purchases returns and allowances $1,800

Purchases discounts $1,250

Freight-in $1,590

Merchandise inventory, beginning of period $63,000

Merchandise inventory, end of period $37,000

Determine the cost of goods sold.

Cost of Goods Sold Section

$

$

$

Net purchases$

$

Cost of goods sold$

Determine the gross profit.

$