Enter all entries into two T Accounts and make sure you label each amount in the T Account (e.g. Cost of Merchandise Sold 207,000). The following supplementary records summarize Tesla Company's merchandising activities for year 2017. Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized activities in those T-accounts and compute account balances. Cost of merchandise sold to customers in sales transactions Merchandise inventory, December 31, 2016 $207,000 28,000 Invoice cost of merchandise purchases 204,000 Shrinkage determined on December 31, 2017 1,000 Cost of transportation-in 2,500 Cost of merchandise returned by customers and restored to inventory 2,800 Purchase discounts received 1,200 Purchase returns and allowances 2,000 Enter all entries into two T Accounts and make sure you label each amount in the T Account (e.g. Cost of Merchandise Sold 207,000). The following supplementary records summarize Tesla Company's merchandising activities for year 2017. Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized activities in those T-accounts and compute account balances. Cost of merchandise sold to customers in sales transactions Merchandise inventory, December 31, 2016 $207,000 28,000 Invoice cost of merchandise purchases 204,000 Shrinkage determined on December 31, 2017 1,000 Cost of transportation-in 2,500 Cost of merchandise returned by customers and restored to inventory 2,800 Purchase discounts received 1,200 Purchase returns and allowances 2,000