Inventory at the beginning of the year cost $13,500. During the year, the company purchased (on account) inventory costing $84,500. Inventory that had cost $80,500 was sold on account for $95,400. At the end of the year, inventory was counted and its cost was determined to be $17,500.

a. Calculate the costs of goods sold.

b. What was the dollar amount of Gross Profit.

c.

Prepare journal entries to record these transactions, assuming a perpetual inventory system is used. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Record the inventory purchased of $84,500 on account. 2. Record the sales revenue of $95,400 on account. 3. Record the cost of goods sold of $80,500.