The following supplementary records summarize Tesla Company's merchandising activities for year 2016 (it uses a perpetual inventory

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The following supplementary records summarize Tesla Company's merchandising activities for year 2016 (it uses a perpetual inventory system). Set up T-accounts for Merchandise Inventory and Cost of Goods Sold. Then record the summarized activities in those T-accounts and compute account balances.

Cost of merchandise sold to customers in sales transactions . . . . . . . . . . . . . . . . . . $196,000

Merchandise inventory, December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000

Invoice cost of merchandise purchases, gross amount . . . . . . . . . . . . . . . . . . . . . . . . 192,500

Shrinkage determined on December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800

Cost of transportation-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900

Cost of merchandise returned by customers and restored to inventory . . . . . . . . . . . . . 2,100

Purchase discounts received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,700

Purchase returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

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