M6-6 Preparing Journal Entries for Inventory Purchases and Sales in a Perpetual System Inventory at the beginning of the year cost $13,400. During the year, the company purchased (on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for $95,000. At the end of the year, inventory was counted and its cost was determined to be $17.400. (a) Show the cost of goods sold equation using these numbers. (b) What was the dollar amount of gross profit? (c) Prepare journal entries to record these transactions, assuming a perpetual inventory system is used