Identify the errors in the following schedule of cost of merchandise sold for the current year ended March 31, 2008: Cost of merchandise sold:       Merchandise inventory, March 31, 2008   $135,750 Purchases   $852,100   Plus: Purchases returns and allowances 10,500     Purchases discounts 8,000 18,500   Gross purchases   $870,600   Less transportation in   7,500   Cost of merchandise purchased     863,100 Merchandise available for sale     $998,850 Less merchandise inventory, April 1, 2007     115,150 Cost of merchandise sold     $883,700

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