The trial balance of mendez company at the end of its fiscal year, august 31, 2022, includes these accounts: beginning inventory $18,700; purchases $154,000; sales revenue $190,000; freight-in $8,000; sales returns and allowances $3,000; freight-out $1,000; and purchase returns and allowances $5,000. the ending inventory is $21,000.

Gross Profit: 186,000 - 154,700 = 31,300

COGS: 154,700

Net Sales: 186,000

Explanation:

Beginning Inventory                         18,700

Purchases                                       154,000

Freight-In                                            8,000

Purchase Returns and Allowances (5,000)

Ending inventory                            (21,000)  

COGS                                               154,700

Sales Revenue                            190,000

Sales Returns and Allowances     (3,000)

Freight-Out                                    (1,000)  

Net Sales:                                    186,000

Gross Profit: 186,000 - 154,700 = 31,300

Notes: the freight-in are cost required to get the inventory ready for sale so arec capitalized through inventory

the freight-out is part of the effort to sale, thus decrease the sales figure.

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)