1. On January 1, 2021, Amazon purchased 2,000 Nike sneakers by $120 each on account. By December 15, 2021, Amazon sold 1,800 sneakers by $115 each by cash. Their operating expenses were $40,000.

First, record the purchase of inventory on account

Date	Transaction Account	Debit	Credit

Second, record the sales revenue and cash

Date	Transaction Account	Debit	Credit

Third, record the cost of goods sold and the change in inventory

Date	Transaction Account	Debit	Credit

Calculate gross profit (loss)

Gross profit =

Calculate net income (loss)

Net Income (Loss) =