The following supplementary records summarize Titus Company’s merchandising activities for year 2005. Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the sum¬

marized activities in those T-accounts and compute account balances. jjk4

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Cost of merchandise sold to customers in sales transactions Merchandise inventory, December 31, 2004 Invoice cost of merchandise purchases/.. $186,000 27,000 190.500 Shrinkage determined on December 31, 2005 700 Cost of transportation-in 1,900 Cost of merchandise returned by customers and restored to inventory 2,200 Purchase discounts received 1,600 Purchase returns and allowances 4,100