Accounting records for Rockford Corporation yield the following data for the year ended December 31, 2010:

Inventory, December 31, 2009................................................................. $ 8,000

Purchases of inventory (on account)......................................................... 49,000

Sales of inventory 76% on account; 24% for cash (cost $40,000)......... 74,000

Inventory at FIFO, December 31, 2010....................................................17,000

Requirements

1. Journalize Rockford’s inventory transactions for the year under the perpetual system.

2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement.