QUESTION 6 Not complete Marked out of 1.00 FRag question Inferring Purchases Using Cost of Goods Sold and Inventory Balances Geiger Corporation, a retail company, reported inventories of $1,320,000 in 2016 and $1,460,000 in 2017. The 2017 income statement reported cost of goods sold of $6,980,000. a. Compute the amount of inventory purchased during 2017 b. Prepare journal entries to record (1) purchases, and (2) cost of goods sold General Journal Description Debit Credit c. Post the journal entries in part b to their respective T-accounts (including ending balance for inventory) Cash Inventory Bal 1,320,000 Cost of Goods Sold Bal d. Record each of the transactions in part b in the financial statement effects template to show the effect of these entries on the balance sheet and income statement. Remember to use negative signs with answers when appropriate. Contr Capital Noncash Earned Transaction Cash Asset+ Revenue - Expenses = Net income AssetsLiabilities . Capital 1. Purchase Inventory 2.Cost of inventory sold