On January $1,$ Escobar Supply's inventory account had a beginning balance of $$7,740,000.$ Escobar engaged in the following transactions during the year:

Purchased merchandise inventory for $$11,400,000.$

Generated net sales of $$31,200,000.$

Reported gross profit for the year of $$18,000,000$ in its income statement.

Required:

a$.$ At what amount was Cost of Goods Sold reported in the company's year$-$end income statement?

b$.$ At what amount was Merchandise Inventory reported in the company's year$-$end balance sheet?

$\backslash$table$[[$a$.$ Cost of goods sold$],[$b$.$ Merchandise inventory$]]$