Penno Company reported ending inventories of $23,560,000 in 2020 and $25,790,000 in 2019. Cost of goods sold totaled $142,790,000 in 2020.

a. Prepare the journal entry to record cost of goods sold.

b. Set up a T-account for inventory and post the cost of goods sold entry from part a to this account.

c. Using the T-account from b, determine the amount of inventory that was purchased in 2020. Prepare a journal entry to record those purchases.

d. Using the financial statement effects template, show the effects of the entries in parts a and c on the balance sheet and income statement.