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Amanda Kilborn Inc. purchased inventory costing $130,000 and sold 80% of the goods for $284,000. All...

Amanda Kilborn Inc. purchased inventory costing $130,000 and sold 80% of the goods for $284,000. All purchases and sales were on account. Kilborn later collected 15% of the accounts receivable.

Required:

  1. Journalize these transactions for Kilborn, which uses the perpetual inventory system.
  2. For these transactions, show what Kilborn will report for inventory, revenue, and expenses on its financial statements. Report Gross Profit on the appropriate statement.
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