Inferring Purchases Using Cost of Goods Sold and Inventory Balances Penno Company reported ending inventories of $4,712,000 in 2017 and $5,158,000 in 2016. Cost of goods sold totaled $28,558,000 in 2017. a. Prepare the journal entry to record cost of goods sold. Description Debit Credit Cost of Good Sold 28,558,000 0 Inventory 0 28,558,000 b. Set up a T-account for inventory and post the cost of goods sold entry from part a. to this account. Inventory Balance 5,158,000 0 28,558,000 x 0 x 29,004,000 x Balance 4,712,000 0 a. OX c. c. Using the T-account from b, determine the amount of inventory that was purchased in 2017. Prepare a journal entry to record those purchases. Assume the inventory was purchased using cash. Description Debit Credit Inventory 29,004,000 X 0 Cash 0 29,004,000 X d. Using the financial statement effects template, show the effects of the entries in parts a and con the balance sheet and income statement. Note: Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset Asset Liabilities Capital Capital Revenues Expenses Net Income 0 + 28,558,000 x = 0 0 28,558,000 X 0 28,558,000 (28,558,000) (29,004,000) X + 29,004,000 X = 0 0 0 0 0 0 + + - a. + + C. + 0 + =