isactions on journals, ledgers, and financial Exercise 4-2A Effect of inventory transactions on journals statements: perpetual system Dan Watson started a small merchandising business in Year sevents during its first year of operation. Assume that Watson uses the perpetual 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $18,000 cash. 3. Sold inventory costing $15,000 for $32,000 cash. ising business in Year 1. The business experienced the follow. Assume that Watson uses the perpetual inventory system Required a. Record the events in general journal format. b. Post the entries to T-accounts. c. Determine the amount of gross margin. d. What is the amount of net cash flow from operating activities for Year 12