Missy.,Inc purchased inventory costing $170,000 and sold 70% of the goods for $219,000. All purchases and sales were on account. Missy later collected 20% of the account receivable.

1. Journal these transactions for Missy, which uses the perpetual inventory system.

2. For these transactions, show what Missy will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement.