1) Inventory at the beginning of the year cost $13,000. During the year, the company purchased (on account) inventory costing $82,000. Inventory that had cost $78,000 was sold on account for $93,400. At the end of the year, inventory was counted and its cost was determined to be $17,000.

What was the dollar amount of Gross Profit?

Write Journal Entries:

A) Record the inventory purchased of $82,000 on account.

B) Record the sales revenue of $93,400 on account.

C) Record the cost of goods sold of $78,000.