Inferring Purchases Using Cost of Goods Sold and Inventory Balances FSET Geiger Corporation, a retail company, reported inventories of $132,000 at the beginning of the year, and $146,000 at the end of the year. The annual income statement reported cost of goods sold of $698,000. 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 Liabilities + Contrib Capital + Earned Capital Revenues Transaction 1. Purchase inventory 2. Cost of inventory sold Cash Asset +Noncash Asset= Expenses =Net Income

Inferting Purchases Using Cost of Goods fold and inventory lakances fset a Compute the amount ef invenory purchased ourne the yeer. 1