First of all thanks for helping! I am so stuck everything else is right but I cannot for my life calculate what it is asking for.



please help!!! ]:



INFORMATION:



Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a beginning balance of $6,450,000. Ranns engaged in the following transactions during the year:



1. Purchased merchandise inventory for $9,500,000.

2. Generated net sales of $26,000,000.

3. Recorded inventory shrinkage of $10,000 after taking a physical inventory at year-end.

4. Reported gross profit for the year of $15,000,000 in its income statement.





Question:

Immediately prior to recording inventory shrinkage at the end of the year, what was the balance of the Cost of Goods Sold and Merchandise Inventory account?



THANK YOU!!!!!!