Exercise 5-8 Inventory and cost of sales transactions in T-accounts QPQP2 The following summarizes Tesla's merchandising activities for the year. Set up T-accounts for Merchandise Inventory and for Cost of Goods Sold. Enter each line item into one of the two T-accounts and compute the T- account balances. $196,000 25,000 192,500 800 Cost of merchandise sold to customers Merchandise inventory, beginning-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 2,900 2,100 1,700 4,000 Check Ending Merch. Inventory, $20,000