Using the following information, answer the questions.

Net sales$198,000Purchases92,000Purchases returns and allowances1,800Purchases discounts1,250Freight-in1,590Merchandise inventory, beginning of period63,000Merchandise inventory, end of period37,000

Determine the cost of goods sold.

Cost of Goods Sold Section

$

$

$

Net purchases$

$

Cost of goods sold$

Determine the gross profit.

$