ELiuvEUI UIIV BLECEDoard LASH Mal- AISSBRSR, H. eBook Calculator Print Item Exercise 6-60 (Algorithmic) Recording Purchases (Appendix 6A) Diveston, Inc., purchased 1,000 bags of insulation, on account, from Warmco, Inc. The bags of insulation cost $4.25 each, Diveston paid Glacamini Transporation $260 to have all 1,000 bags of insulation shipped to its warehouse. Diveston returned 50 bags that were defective and paid for the remainder Assume that Diveston uses the periodic inventory system. Required: 1. Prepare the journal entry to record the purchase of the 1,000 bags of insulation. (Purchased inventory on account) 2. Prepare the journal entry to record the payment for shipping. (Paid cash for shipping fees) 3. Prepare the journal entry for the return of the 50 defective bags. Round your answers to two decimal places (Returned merchandise) 1208 AM ENG 10/25/2019 2. Prepare the journal entry to record the payment for shipping. (Paid cash for shipping fees) 3. Prepare the journal entry for the return of the 50 defective bags. Round your answers to two decimal places. (Returned merchandise) 4. Prepare the journal entry to record the payment for the 950 bags kept by Diveston. Round your answers to two decimal places. (Paid off accounts payable) 5. What is the total cost of this purchase? Round your answer to two decimal places. Check My Work 2 more Check My Work uses remaining Previous Next Save and Exit Submit Assignment for Grading 12:08 AM ENG 10/25/2019 Brief Exercise 6-33 (Algorithmic) Applying the Cost of Goods Sold Model Milton Company reported inventory of $150,000 at the beginning of 2014. During the year, it purchased inventory of $625,000 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 $97,500. Required: 1. What was Milton's cost of goods sold for 2014? 2. What is Milton's gross margin for the year? 1208 AM ENG 10/25/2019