Geiger Corporation, a retail company, reported inventories of $1,980,000 in 2016 and $2,190,000 in 2017. The 2017 income statement reported cost of goods sold of $10,470,000.

a. Compute the amount of inventory purchased during 2017.

d. Record each of the transactions in part b in the financial statement effects template to show the effect of these entries on the balance sheet and income statement.

Remember to use negative signs with answers when appropriate.

$ 210,000 b. Prepare journal entries to record (1) purchases, and (2) cost of goods sold. General Journal Description Debit Credit (1) Inventory 0 Cash 0 0 x (2) Cost of goods sold Inventory 0 OX Ox c. Post the journal entries in part b to their respective T-accounts (including ending balance for inventory). Cash 0 0x Bal. Inventory 1,980,000 0x 0x0 Bal. Cost of Goods Sold OX + Noncash Assets Revenue - - Net income Transaction 1. Purchase Inventory 2. Cost of inventory sold. Cash Asset Ox 0 Liabilities 0 0 Ox + Contr. Capital + Earned Capital 0 0 Expenses 0 Ox OX 0X OX