Calculation of cost of goods sold: periodic inventory system with sales returns and allowances

the following amounts are known for adams gift shop:

beginning merchandise inventory $27,000
ending merchandise inventory 22,000
purchases 78,000
purchases returns and allowances 3,900
purchases discounts 6,000
freight-in 350

assume the business makes estimates for sales returns and allowances at year-end. the balances for estimated returns inventory are shown. beginning estimated returns inventory $2,000 ending estimated returns inventory 1,600 prepare the cost of goods sold section of the income statement.

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.