On July 31, 2008, the balances of the accounts appearing in the ledger of Odell Company are as follows:obj. 3

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Cash Accounts Receivable $ 73,200 Sales Discounts $ 37,500 288,500 Purchases 2,146,000 Merchandise Inventory, Aug. 1, 2007 350,900 Purchases Returns and Allowances 24,000 Office Supplies 12,100 Purchases Discounts 18,000 Prepaid Insurance 18,000 Transportation In 43,600 Land 140,000 Sales Salaries Expense 625,000 Store Equipment 683,100 Advertising Expense 220,000 Accumulated Depreciation- Delivery Expense 36,000 Store Equipment 223,600 Depreciation Expense-Store Office Equipment 314,000 Equipment 23,600 Accumulated Depreciation- Miscellaneous Selling Expense 42,800 Office Equipment 65,000 Office Salaries Expense 400,000 Accounts Payable 111,300. Rent Expense 125,000 Salaries Payable Unearned Rent Notes Payable 11,800 Insurance Expense 12,000 33,200 Office Supplies Expense 9,200 50,000 Depreciation Expense- Capital Stock Retained Earnings Dividends Sales Sales Returns and Allowances Instructions 100,000 Office Equipment 6,000 660,200 Miscellaneous Administrative Expense 23,400 75,000 Rent Revenue 25,000 4,425,800 Interest Expense 3,000 40,000 1. Does Odell Company use the periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Odell Company for the year ended July 31, 2008. The merchandise inventory as of July 31, 2008, was $376,400. 3. Prepare the closing entries for Odell Company as of July 31, 2008.