Identify the errors in the following schedule of the cost of goods sold for the year ended May 31, 2018 Cost of goods sold:
Inventory, May 31, 2018
$ 105,000
Cost of merchandise purchased:
Purchases
$1,110,000
Purchases returns and allowances
55,000
Purchases discounts..
30,000
Freight in...
(22,000)
Total cost of merchandise purchased.
1,173,000
Inventory available for sale.
$1,278,000
Less inventory, June 1, 2017
91,300
Cost of goods sold before estimated returns..
$1,186,700
Estimated returns of this year's sales
43,300
Cost of goods sold
$1,230,000