Inventory at the beginning of the year cost $ 13,400. During the year, the company purchased (on account) inventory costing $ 84,000. Inventory that had cost $ 80,000 was sold on account for $ 95,000. At the end of the year, inventory was counted and its cost was determined to be $ 17,400.
(a) Show the cost of goods sold equation using these numbers.
(b) What was the dollar amount of Gross Profit?
(c) Prepare journal entries to record these transactions, assuming a perpetual inventory system is used.