1. Describe perpetual system and periodic system [1 point] 2. Describe the Four Methods of Inventory Valuation [1 point] 3. The trial balance before adjustment of XYZ Company reports the following balances: Dr. Cr. Accounts receivable $100,000 Allowance for doubtful accounts $ 2,500 Sales (all on credit) 750,000 Sales returns and allowances 40,000 Instructions Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. [1 point] 4. During June, the following changes in inventory item 29 took place: June 1 Balance 1,400 units @ $24 14 Purchased 900 units @ $36 24 Purchased 700 units @ $30 8 Sold 400 units @ $50 10 Sold 1,000 units @ $40 29 Sold 500 units @ $44 Perpetual inventories are maintained in units only. Instructions What is the cost of the ending inventory for item 29 under the following methods? (Show calculations.) (a) FIFO. [1.5 points] (b) Average Cost. [1.5 points] 5. Calculate the Cost of Goods Sold under periodic method from the following information: [2 points] Sales 58450 Sales Return 395 Purchases 35975 Purchase Discount 3590 Beginning Inventory 18780 Gross Margin 25 % on Cost Ending Inventory 4721 6. Sales and purchases of company XYZ for the year 2010 had been $1,400,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2010) was $170,000; XYZ's gross profit is 40% of selling price. Instructions Compute the cost of ending inventory. [2 points]