Summer Kluxon, Inc., purchased inventory costing $120,000 and sold 75% of the goods for $150,000. All purchases and sales were on account. Kluxon later collected 30% of the accounts receivable.
1. Journalize these transactions for Kluxon, which uses the perpetual inventory system.
2. For these transactions, show what Kluxon will report for inventory, revenues, and expenses on its financial statements. Report gross profit on the appropriate statement.