Chapter 5, Problem 5.30E

Computing cost of goods sold in a periodic inventory system

Zeta Electric uses the periodic inventory system. Zeta reported the following selected amounts at May 31, 2016:

Merchandise Inventory, June 1, 2015	$ 16,000
Merchandise Inventory, May 31, 2016	24,00
Purchases	90,000
Purchase Discounts	4,500
Purchase Returns and Allowances	6,500
Freight In	$ 7,000
Sales Revenue	172,000
Sales Discounts	7,000
Sales Returns and Allowances	14,000
Common Stock	32,000
Retained Earnings	17,000

Compute the following for Zeta:

a. Net sales revenue.

b. Cost of goods sold.

c. Gross profit.