3. Please prepare the appropriate accounting entries for each of the following questions. (36%) Hualian Company adopts the periodic inventory system. The balance of items related to the adjusted trial balance on December 31, 2021 is as follows. The ending inventory is $40,000, please prepare the closing entry on December 31. (8%) Purchase Purchase Returns and Allowances Inventory Administrative Expense $120,000 Interest Expense $20,000 Tax $30,000 Sales Revenue $40,000 $5,000 $8,000 $250,000 1/2 The Taipei company uses the percentage of accounts receivable method to estimate bad debts, and as of January 1, 2021, the amount of Allowance for Doubtful Accounts is $400 (debit balance). On March 1", the customer Mr. Wang's payment of $15,000 could not be recovered, but on March 29th, the customer Mr. Wang paid part of the payment of $10,000, and the rest could not be paid. As of December 31 for the year, the balance of accounts receivable was 300,000 and estimated doubtful accounts were approximately 2% of net accounts receivable. Please try the above possible entries. (8%) The following transactions are for Raffles Corporation: September 1, 2021 received Zhongtai Corporation's 9% annual interest and 2-month promissory note of $40,000. On Oct. 1, 2021, sold $300,000 of goods to Lily Corporation and received $60,000 in cash and 12% annual interest and 120-days promissory note of $240,000. Please list all possible entries generated by the above transactions. (10%) Assuming that Hsinchu Department Store has a normal gross margin of 40% and inventory of $80,000 on January 1, 2021, the accounts show the net sales revenue and purchases for January as follows: Net Sales Revenue $120,000, Purchase $45,000, Purchase Discount $1,500, Purchase Returns and Allowances $3,500, Purchase Freight $2,000. Please estimate the closing inventory of Hsinchu Department Store on January 31st using gross margin method. (10%) 1