e. During 2018, Black Jack sells $20,000 of goods to Zeppo for cost plus 40%. Zeppo has $2,800 of such purchases in its beginning inventory and $7,000 of such purchases in its ending inventory. Zeppo...

e. During 2018, Black Jack sells $20,000 of goods to Zeppo for cost plus 40%. Zeppo has $2,800 of such purchases in its beginning inventory and $7,000 of such purchases in its ending inventory. Zeppo owes Black Jack $2,000 for purchases at year-end. During 2018, Zeppo sells $8,000 of goods to Black Jack at cost plus 60%. Of these goods, $1,200 are in Black Jack’s beginning inventory, and $1,600 of such goods are in its ending inventory. Black Jack owes Zeppo $6,000 for purchases at year-end.