L06-3, L06-8 EXERCISE 6.4 Perpetual Inventory Systems Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a begin ning balance of $7,740,000. Ranns 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. At what amount was Cost of Goods Sold reported in the company's year-end income statement At what amount was Merchandise Inventory reported in the company's year-end balance sheet? a. b. c. Immediately prior to recording inventory shrinkage at the end of the year, what was the bal- ance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account?