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Using the following information, determine the (a) cost of goods sold (show your work) and (b) gross profit. Net sales $198,000 Purchases 92,000 Purchases returns

Using the following information, determine the (a) cost of goods sold (show your work) and (b) gross profit.

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

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