1. Sams Club is a merchandising entity; on October 1^st, they purchased goods from a company for $22,000 with terms of freight on board (FOB) shipping point, 3/10, n/EOM, Sams Club paid 30% of the amount due on October 5^th, another 30% on October 9^th, and the remaining amount on October 14^th. What is the recorded value of goods in Sams Club Merchandise inventory account?

2. Starbucks uses a perpetual inventory system following LIFO. On September 1^st, the company had 50 bikes in inventory, which they had purchased at $50/unit. On September 6^th, they purchased 50 bikes at $80/unit. On September 9^th, they sold 75 bikes at $150/unit. What should Starbucks report as COGS?