Printer Supply Company sells computer printers and printer supplies. One of its products is a toner cartridge for laser printers. At the beginning of 2011, there were 225 cartridges on hand hat cost $62 each. During 2011, Printer Supply purchased 1,475 cartridges at $62 each. After inspection, Printer Supply determined that 15 cartridges were defective and returned them to the supplier. Printer Supply also sold 830 cartridges at $95 each and sold an additional 710 cartridges at $102 each after a midyear selling price increase. Customers returned 20 of the cartridges that were purchased at $102 to Printer Supply for miscellaneous reasons. Assume that
Printer Supply uses a perpetual inventory system.
Required:
1. Prepare summary journal entries to record the purchases, sales, and return of inventory.
Assume that all purchases and sales are on credit but no discounts were offered.
2. What is the cost of ending inventory, cost of goods sold, and gross profit for 2011?