Inferring Purchases Using Cost of Goods Sold and Inventory Balances FSET Geiger Corporation, a retail company, reported inventories of $99,000 at the beginning of the year, and $109,500 at the end of the year. The annual income statement reported cost of goods sold of $523,500. a. Compute the amount of inventory purchased during the year. $ b. Record (1) purchases of inventory and (2) cost of goods sold in the financial statement effects template to show the effect of these entries on the balance sheet and income statement. Balance Sheet Income Statement Transaction Cash Asset + Noncash Asset = Liabilities + Contribapital + Earned Capital Revenues - Expenses = Net Income 1. Purchase inventory 2. Cost of inventory sold