4. The Worksheet Accounts Acc. No Trial Balance Adjustments Income Statement Balance Sheet OR CF OR CR OR CP DR CF Bank 100 19.065 19 065 Accounts Receivable 105 10.800 114 10 686 Allowance for Doubtful Account 110 285 114 171 Merchandise Inventory 115 53.350 53 350 Supplies 47 100 47 100 120 8.600 Building 8.600 125 148 700 148 700 Aco. Amort - Building 130 3 400 3 400 Accounts Payable 200 2.800 2 800 HST Payable 205 7.950 7.850 HST Recoverable 210 1040 1040 Mortgage Payable 220 95.000 95 000 J. Boulton, Capital 300 113.670 J. Boulton, Drawings 113 670 305 13 500 13.500 Sales 400 55,500 65 500 Sales Discounts 405 1450 1450 Sales Returns and Allowances 410 400 400 Purchases 500 18.200 18 200 Purchase Discounts 505 100 100 Purchase Returns & Allowances| 510 150 150 Freight-in 515 3200 3200 Automobile Expense 600 2.950 2.950 Freight-out 620 2650 2 650 Loss on Disposal of Fixed Asset 630 3.100 3.100 Utilities Expense 640 1850 1850 288.855 288.855 114 114 87.150 102 850 248.691 232 991 15.700 15.700 102 850 102 850 248 691 248 691 Answer the following questions, which relate to the worksheet. i. Is this worksheet for a Periodic Merchandise business, or a Perpetual one? How do you know for sure? This worksheet is for a Periodic Merchandise business. I know this because this worksheet has accounts such as purchases, purchase discounts and purchase returns and allowances. Those accounts are not part of a Perpetual Merchandise business. ii. Why does Merchandise Inventory (an asset) appear in the Income Statement section of the worksheet? Explain clearly and thoroughly. The Merchandise Inventory appears in the Income Statement because it is used to adjust the purchases made to be able to report the amount of goods sold