George's Department Store George's Department Store is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales Purchases Inventory (beginning) Inventory (ending) Purchase returns and allowances Purchase discounts Transportation-in Sales discounts Sales returns and allowances $200,000 90,000 23,000 17,000 3,000 7,000 4,000 8,000 5,000 1. Refer to the account information for George's Department Store. Determine George's gross profit. a. $93,000 b. $97,000 c. None of these choices d. $103.000 2. Anthony's Shoe Company uses a perpetual inventory system. The beginning balance in its inventory account is $1,500 and the ending balance is $1,000. Cost of goods sold is $6,500. What was the amount of inventory purchased during the year? a. S 500 b. $7,000 c. $7,500 d. $6,000