6. You are the inventory manager for a trendy urban retail inventory merchandiser. Your compen- sation includes a bonus plan based on the amount of gross profit reported in the financial state- ments. Your supervisor comes to you and asks your opinion about changing the inventory costing method from moving weighted average to FIFO. Since costs have been rising and are expected to continue to rise, your superior predicts the company will be more attractive to investors because of the reported higher profit using FIFO. You realize this proposed change will likely increase your bonus as well. What do you recommend? 7. Gale Company has the following inventory and purchases during the fiscal year ended December 31, 2017 Beginning inventory ......... 280 Units at $80/ unit Feb. 10 purchased.. 195 Units at $84/unit Feb. 20 sold. 360 Units at $160/unit Mar. 13 purchased 290 Units at $78/ unit Sept. 5 purchased 255 Units at $64/unit Oct. 10 sold Is 10 units at $160/unit Gale Company employs a perpetual inventory system 5.Thorsten Company, a trendy clothing retailer, had the following transactions in March: March 2 Purchased merchandise from Sabine Company under the following terms: $1,800 invoice price, 2/15, n/60, FOB factory. (The cost of the merchandise to Sabine Company was $990.) March 3 Paid UBS Shipping $125 for shipping charges on the purchase of March 2. March 4 Returned to Sabine Company unacceptable merchandise that had an invoice price of $300 (and a cost to Sabine of $165). Sabine returned the merchandise to inventory. March 17 Sent a cheque to Sabine Company for the March 2 purchase, net of the discount and the returned merchandise. I Required Assuming both Thorsten and Sabine use a perpetual inventory system: a. Present the journal entries Thorsten Company should record for these transactions. b Present the journal entries Sabine Company should record for these transactions