Account Cash Account not yet received Merchandise Inventory Store Equipment Depreciation Provision - Store Equipment Accounts Payable Capital, Azim Take it, Azim Sales Allowances and Sales Returns Sales Discounts Cost of Goods Sold Salary Spending Utility Shopping RM 14,000 27,600 27,500 42,000 9,000 31,200 45,700 5,000 244,500 4,600 3,900 172,000 27,700 6,100 The following are the transactions involved by Metro Book Company during the month of December 2015. December 1 Purchasing merchandise on credit from Syarikat Ilmu, RM10,500; FOB destination terms, 1/10, n/30. The transportation cost is RM400. 2 Selling merchandise on credit to Syarikat Pelita, RM4,500; FOB terms of shipping point, 2/15, n/30. The cost of merchandise sold is RM2,250. 5 Return merchandise purchased from Syarikat Ilmu on 1 December, RM400 9 Received a return of RM350 worth of merchandise from Syarikat Pelita for sale on 2 December. The cost of returned merchandise is RM175. 11 Received cash from Pelita Company for sale on 2 December. 16 Pay to Syarikat Ilmu for purchases made on 1 December. 26 Aqil took a book from Metro Book Company to give to his daughter. The cost of the book is RM90. (a) Prepare journal entries and adjustment entries to record transactions that occurred during December 2015. (6) Prepare the income statement for the year ended 31 December 2015, and the balance sheet as at 31 December 2015 for Metro Book Company. (c) Briefly explain TWO (2) advantages of using a continuous inventory system