Creating the cost of goods sold section of income statement

Question

Response to the following problem:

Using the following information, prepare the Cost of Goods Sold section of an income statement.

Purchases Discounts                                      $ 8,500

Merchandise Inventory, December 31              189,000

Purchases                                                    476,000

Merchandise Inventory, January 1                  185,000

Purchases Returns and Allowances                   9,000

Freight In                                                    12,000