Exercise $4-11$A $($Algo$)$ Effect of inventory losses: Perpetual system LO $4-5$

How Designs experienced the following events during Year $1,$ its first year of operation:

Started the business when it acquired $$55,000$ cash from the issue of common stock.

Paid $$22,000$ cash to purchase inventory.

Sold inventory costing $$12,200$ for $$27,500$ cash.

Physically counted inventory; had inventory of $$9,300$ on hand at the end of the accounting period.

Required

a$.$ Record the events in the T$-$accounts provided.

b$.$ Prepare an income statement and balance sheet

Complete this question by entering your answers in the tabs below.

Req A

$\backslash$table$[[$Req B Income,$],[$Statement$,$ Req $B$ Balance

Sheet