Geiger Corporation, a retail company, reported inventories of $1,320,000 in 2019 and $1,460,000 in 2020. The 2020 income statement reported cost of goods sold of $6,980,000.

a. Compute the amount of inventory purchased during 2020.

b. Prepare journal entries to record (1) purchases, and (2) cost of goods sold.

c. Post the journal entries in part b to their respective T-accounts.

d. Record each of the transactions in part bin the financial statement effects template to show the effect of these entries on the balance sheet and income statement.