In each case, use the following information to calculate the missing information:

 

Case 1

Case 2

Case 3

Gross sales

$640,000

$ ?

$ ?

Sales discounts

?

25,600

19,200

Sales returns and allowances

19,200

44,800

32,000

Net sales

608,000

1,209,600

 

Merchandise inventory, January 1

256,000

 

384,000

Purchases

384,000

768,000

 

Purchase discounts

7,680

13,440

12,800

Purchase returns and allowances

24,320

31,360

32,000

Net purchases

352,000

 

672,000

Transportation-in

25,600

38,400

32,000

Net cost of purchases

377,600

761,600

?

Cost of goods available for sale

?

1,081,600

1,088,000

Merchandise inventory, December 31

?

384,000

448,000

Cost of goods sold

320,000

?

640,000

Gross margin

 

512,000

320,000