Assume a Tiger Sports outlet store began January 2020 with 43 pairs of water skis that cost the store $39 each. The sale price of these water skis was $62. During January, 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 January. Also compute gross profit for January 3. What is the cost of the store's January 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 account for this difference? Requirement 1. Which cost method does the store use? Explain how you arrived at your answer. Tiger Sports uses This is apparent from the flow of costs out of inventory. For example, the January 13 sale shows unit cost of which came from the This is how wor! Requirement 2. Determine the store's cost of goods sold for January. Also compute gross profit for January The cost of goods sold is $. The gross profit for January is $ Requirement 3. What is the cost of the store's January 31 inventory of water skis? The cost of the company's inventory at January 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.) Date Accounts Debit Credit Inventory Transactions Units Unit Cost Unit Sale Price Jan. 2 Sale 20 $ 39 $ 62 Jan. 9 Purchase 81 41 Jan. 13 Sale 23 39 62 Jan. 18 Sale 7 41 63 Jan. 22 Sale 27 41 63 Jan. 29 Purchase ........ 25 43