02) Closing Entries under Perpetual Accounting Method: (7) 2 a) what are the basis on which an entity decides to use periodic or perpetual inventory system. (2) 2 b) Executive suits deals in a popular stock-printer units. The updated records of quantities, sales, and purchases of this unit is maintained as follows: Number of units 2700 3540 Date 1 Jan Inventory 12-May Purchase 30-May Purchase return 9-Jul Purchase 4-Oct Purchase 18-Dec Purchase Goods Available for sale Unit sold during the year Inventory, dec 31 Cost per unit Total cost 30 81000 31 109740 2697 31.05 74520 59706 97650 419919 1860 3000 13413 10400 013 3 Additional Information: 1 The company uses FIFO as inventory Valuation Method 2 All the printer that were sold had a selling price of 35 per unit 3 The company keeps its record using perpetual inventory system Required: 1 Prepare closing entries using a perpetual inventory system based on limited information available above