1. On July 1, Corrao Company purchased $1,400 of inventory on account with credit terms of 4/10, net 30. Corrao Company uses the perpetual inventory system. On July 5, Corrao Company paid the amount due. What journal entry did they prepare on July 5?

2. A company has a beginning inventory of $40,000 and purchases during the year of $90,000. The beginning inventory consisted of 1,000 units and 8,000 units were purchased during the year. The company has 5,000 units left at year minusend. Under average minuscost, what is Cost of Goods Sold? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)