Inventory at the beginning of the year cost $12,500. During the year, the company purchased (on account) inventory costing $79,500. Inventory that had cost $75,500 was sold on account for $91,400. At the end of the year, inventory was counted and its cost was determined to be $16,500

Calculate the cost of goods sold.

Calculate the cost of goods sold.

Prepare journal entries to record these transactions, assuming a perpetual inventory system is used.