Sigma Company had Inventory balance at the beginning of January in the amount of $315 000. The following transactions were completed by Sigma Company during January of the current year. Signa Company uses perpetual inventory system.

Jan 2022 Purchased a merchandise on account from Alpha Co for $90,000, terms FOB shipping point, 3/15, n/30 with freight of $500 paid by cash.

Jan 2022 Sold merchandise on account $75,000 to Beta Co, terms 2/10, n/30. The cost of the merchandise sold was 80% of sales.

Jan 2022 Purchased inventory for $64,000 cash.

Jan 2022 Returned $22,000 of merchandise purchased on 5 Jan 2022 receiving full credit.

Jan 2022 Beta Co returned merchandise from sale on 6th of January, $10,000. The cost of returned merchandise was $8,000.

Jan 2022 Received half of payment due from Beta Co.

Jan 2022 Paid the amount due to Alpha Co.

Required:

Journalize each transaction

Determine the cost of goods sold

What is the Inventory balance at the end of January?

Required:

Journalize each transaction

Determine the cost of goods sold

What is the Inventory balance at the end of January?

with step by step explanation