Exercise 4-11 The following summarizes Tesla's merchandising activities for the year. Set up T-accounts for Merchandise Inventory and for Cost Inventory and cost of of Goods Sold. Enter each line item into one or both of the two T-accounts and compute the T-account balances. sales transactions in T-accounts P1 P2 Check Ending Merch. Inventory, $20,000 Cost of merchandise sold to customers... Merchandise inventory, beginning-of-year. Cost of merchandise purchases, gross amount..... Shrinkage on merchandise as of year-end... Cost of transportation-in for merchandise purchases Cost of merchandise returned by customers and restored to inventory.. Discounts received from suppliers on merchandise purchases...... Returns to and allowances from suppliers on merchandise purchases $196,000 25,000 192,500 800 2,900 2,100 1,700 4,000