Inferring Purchases Using Cost of Goods Sold and Inventory Balances Geiger Corporation, a retail company, reported inventories of $1,320,000 in 2016 and $1,460,000 in 2017. The 2017 income statement reported cost of goods sold of $6,980,000. a. Compute the amount of inventory purchased during 2017 b. Prepare journal entries to record (1) purchases, and (2) cost of goods sold. General Journal Description Debit Credit 1) Inventory Cash 0 X (2) Cost ofgoods sold Inventory