1. A Company uses the periodic system for inventory. A began July 2023 with inventory of $55,000. During July A purchased inventory on account for $95,000 terms 2/10, net/30. Freight charges to deliver the inventory in addition to the inventory purchased were $1000 and were paid in cash. A returned $5000 of the inventory during July and paid for $40,000 of the inventory taking advantage of the discount. The balance will be paid after 30 days. Ending inventory at July 31 was $ 40,000. Sales for July were $210,000.

Use T-accounts or Journal entries to support your answers.

Required: 1. Determine A Companys Cost of Goods sold.

2.Determine A Companys Gross Profit.