An inventory taken at year end December 31 discloses $27,500 of goods on hand. The following additional data is available from the books: Inventory on hand, January 1. .. $ 42,000 Purchases received......... ... 36,000 67,500 Sales (goods delivered to customers).................... Past records indicate that sales are made at 50% above cost. Required a. Estimate the inventory of goods on hand at the close of business on December 31 by the gross profit method and determine if there has been any theft loss. Show appropriate titles for all amounts in your presentation. b. Prepare the journal entries as of December 31 to close merchandise accounts