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 0 0 0 0 b. Set up a T-account for inventory and post the cost of goods sold entry from part a. to this account. Inventory Balance 0 0 a. 0 0 C. 0 O O Balance 0 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 0 0 0 0 d. Using the financial statement effects template, show the effects of the entries in parts a and c on 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 0 0 = + + O a. 0 + 0 + 0 + 0 C. 0 + 0 0 + 0 + 0 0 0 = 0 Please answer all parts of the