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CoursHeroTranscribedText: Stationery Sisters Inc. uses a perpetual inventory system. On 1 January, its inventory account...

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CoursHeroTranscribedText: Stationery Sisters Inc. uses a perpetual inventory system. On 1 January, its inventory account had an opening balance of $7 740 000. Stationery Sisters Inc engaged in the following transactions during the year: 1. Purchased merchandise inventory for $11 400 000. 2. Generated net sales of $31 200 000. 3. Recorded inventory shrinkage of $12 000 after taking a physical inventory at year end. 4. Reported gross profit for the year of $18 000 000 in its income statement. a. At what amount was cost of goods sold reported in the company's year-end income statement? b. At what amount was the merchandise inventory reported in the company's year-end balance sheet? C. Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of cost of goods sold account? What was the balance of the merchandise inventory account

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