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Assume a Cross Country Sports outlet store began October 2020 with 46 pairs of water skis that cost the store $36 cach. The sale price of these water skis was $64. During October, the store completed these inventory transactions: Click the icon to view the inventory transactions.) Requirements 1. The preceding data are taken from the store's perpetual inventory records. Which cost method does the store use? Explain how you arrived at your answer. 2. Determine the store's cost of goods sold for October. Also compute gross profit for October. 3. What is the cost of the store's October 31 inventory of water skis? 4. Assume that ending inventory declined by $225. What value would the company report as Inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference? Requirement 1. Which cost method does the store use? Explain how you arrived at your answer. Cross Country Sports uses This is apparent from the flow of costs out of inventory. For example, the October 13 sale shows unit cost of which came from the This is how y works. Requirement 2. Determine the store's cost of goods sold for October. Also compute gross profit for October. The cost of goods sold is s. The gross profit for October is Requirement 3. What is the cost of the store's October 31 inventory of water skis? The cost of the company's inventory at October 31 is $ Requirement 4. Assume that ending inventory declined by $225. What value would the company report as inventory on the balance sheet? Include in your answer why it chose that value. How would it account for this difference? The company would report ending inventory at because the requires inventory to be reported in the financial statements at Account for this difference Date preparing the necessary journal entry. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit Inventory Transactions Units Unit Cost Unit Sale Price Oct. 2 Sale 13 $ 36 $ 64 Oct. 9 Purchase 79 38 Oct. 13 Sale 33 36 64 Oct. 18 Sale 9 38 65 Oct. 22 Sale 38 38 65 Oct. 29 Purchase 18 40 Print Done