The Heat Be Gone business sells one type of air conditioner and uses the perpetual inventory system. At the beginning of January, the business had a balance in its Cash account of \(\$ 2100\) and an inventory of eight units (air conditioners) costing \(\$ 100\) each. During January, it made the following purchases and sales of inventory:

All purchases and sales were for cash. The business uses bar codes to verify each sale (specific identification). For the sales on 12 January, eight were units from the beginning inventory, and three were units purchased on 5 January. For the sales on 29 January, nine were units purchased on 18 January, and four were units purchased on 25 January.

Required:
a Record the beginning balances in the Cash and Inventory accounts. Using account columns, record the purchases and sales transactions during January and calculate the ending balances of all the accounts you used.
b Assume that the business counted its inventory at the end of January and determined that it had six air conditioners on hand. Prove that the ending balance in the Inventory account that you calculated in

(a) is correct.
c Calculate the business' gross profit.

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5 Jan. 12 18 25 29 Purchases Sales Purchases Purchases Sales 4 units @ $102 per unit 11 units @ $150 per unit 12 units @ $104 per unit 6 units@ $103 per unit 13 units @ $150 per unit