Use the data for Barkley Company in Problem 4-3B to complete the following requirements.

Required

1. Prepare closing entries as of March 31, 2018 (the perpetual inventory system is used).

2. In prior years, the company experienced a 5% returns and allowance rate on its sales, which means approximately 5% of its gross sales were eventually returned outright or caused the company to grant allowances to customers. Compute the ratio of sales returns and allowances divided by gross sales. How does this year’s ratio compare to the 5% ratio in prior years?

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Debit Credit Merchandise inventory.. $ 56,500 202.600 Other (noninventory) assets. Total liabilities..... $ 42,500 Common stock .. 10,000 Retained earnings. Dividends . 154,425 3,000 Sales ... 332,650 Sales discounts... 5,875 Sales returns and allowances 20,000 Cost of goods sold... 115,600 Sales salaries expense. 44,500 Rent expense-Sellng space.. 16,000 Store supplies expense 3,850 Advertising expense... Office salaries expense Rent expense-Office space 26,000 40,750 3,800 Office supplies expense. Totals... 1.100 $539.575 $539,575