Inferring Purchases Using Cost of Goods Sold and Inventory Balances Penno Company reported ending inventories of $37,696 in 2017 and $41,264 in 2016. Cost of goods sold totaled $228,464 in 2017. a. Prepare the journal entry to record cost of goods sold. b. Set up a T-account for inventory and post the cost of goods sold entry from part a. to this account. 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. 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.