Assume a Gold Medal Sports outlet store began May 2020 with 46 pairs of water skis that cost the store $36 each. The sale price of these water skis was $68. During May, the store completed these inventory transactions: (Click the icon to view the inventory transactions.) Requirements 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. 2. Determine the store's cost of goods sold for May. Also compute gross profit for May 3. What is the cost of the store's May 31 inventory of water skis? 4. Assume that ending inventory declined by $235. What value would the company report as inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference? Requirement 1. Which cost method does the store use? Explain how you arrived at your answer. Gold Medal Sports uses This is apparent from the flow of costs out of inventory. For example, the May 13 sale shows unit cost of which came from the This is how works Requirement 2. Determine the store's cost of goods sold for May. Also compute gross profit for May The cost of goods sold is $ The gross profit for May is $ Requirement 3. What is the cost of the store's May 31 inventory of water skis? The cost of the company's inventory at May 31 is $ Requirement 4. Assume that ending inventory declined by $235. What value would the company report as inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference? The company would report ending inventory at $ because the V requires inventory to be reported in the financial statements at Account for this difference by preparing the necessary journal entry. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit 0 Inventory Transactions Units Unit Cost Unit Sale Price $ 68 May 21 $ 36 38 77 25 68 2 Sale 9 Purchase 13 Sale 18 Sale 22 Sale 29 Purchase 36 38 7 69 69 28 38 23 40 Print Done