1- The following relevant information is extracted from Ajman Company's books for the year of 2019: Sales Revenue 1000,000 Sales Returns 50,000 Purchases for the year 600,000 Purchases Returns 60,000 Purchases discounts 10,000 Opening Inventory 200,000 Rate of gross profit on net sales 30% Ajman Company found a large amount of its inventory is damaged and subsequently lost. However, the company identified a part of its inventory with a selling price of 30,000 remained undamaged. Further, some of damaged part with original selling price of 22,500 has a net realizable value of 8000. Required: (a) Estimate the Ending inventory without any adjustment for damages. (6 Marks) (b) Estimate the undamaged inventory at cost (2 marks) (0) Calculate the loss of damaged Inventory (2 marks) 3- United Group purchases a new piece of machinery at a price of $20,000 plus trade-in, f.0.b.factory. United paid $10,000 cash and traded in used machine. The used machine had originally cost $70,000; it had a book value of $50,000 and a second-hand fair value of $55,000, as indicated by recent transactions involving similar machine Freight and installation charges for the new equipment required a cash payment of $2,000. Required: (a) Under the assumption that the exchange has commercial substance, prepare the general journal entry to record this transaction (7 marks) (b) Assuming the same facts as in (a) except that fair value information for the assets exchange is not determinable, prepare the general journal entry to record this transaction. (3 marks) [10 Marks]