BRIEF EXERCISES OBJECT Brief Exercise 6-33 Applying the Cost of Goods Sold Model Milton Company reported inventory of $60,000 at the beginning of 2014 purchased inventory of S625,000 and sold inventory for $950,000. A count of inventory at the end of the year determined that the cost of inventory on hand was $30,000, Required: 1. What was Milton's cost of goods sold for 2014? 2. What is Milton's gross margin for the year? Exercise 6-47 Recording Purchases and Shipping Terms On May 12, Digital Distributors received three shipments of merchandise. The first was shipped F.O.B. shipping point, had a total invoice price of $142,500, and was delivered by a trucking company that charged an additional $8,300 for transportation charges from Digital. The second was shipped F.O.B. shipping point and had a total invoice price of $87.250, including transpor- tation charges of $5,700 that were prepaid by the seller. The third shipment was shipped F.O.B. destination and had an invoice price of $21,650, excluding transportation charges of $1.125 paid by the seller. Digital uses a perpetual inventory system. Digital has not paid any of the invoices. Required: Prepare journal entries to record these purchases