Accounting records for Ontario Tire Ltd. yield the following data for the year ended December 31, 2017 (amounts in thousands): (Click the icon to view the accounting records.) Requirements 1. Journalize Ontario Tire's inventory transactions for the year under (a) perpetual system and (b) the periodic system. Show all amounts in thousands 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? 3. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands), assuming the perpetual inventory system is used. Requirement 1a. Journalize Ontario Tire's inventory transactions for the year under the perpetual system. (Record debits first, then credits. Explanations are not required. Show all amounts in thousands.) The first transaction is the purchase of inventory. Record the entry. Journal Entry Date Accounts December 31 Debit Credit The next transaction is the sale of inventory. Record the entry. (Do not yet record the cost related to the sale. We do this in the next journal entry.) Journal Entry Accounts Debit Credit Date December 31 The last entry is recording the cost of inventory. Record the entry. Journal Entry Date Accounts December 31 Debit Credit i Accounting records (Amounts in thousands) 590 on Inventory, December 31, 2016 .........$ Purchases of inventory (on account) .. Sales of inventory - 78% on account; 22% for cash (cost $820) Inventory at FIFO, December 31, 2017 1,100 2,100 870 Print Done Requirement 1b. Journalize Ontario Tire's inventory transactions for the year under the periodic system. (Record debits first, then credits. Explanations are not required. Show all amounts in thousands.) The first transaction is the purchase of inventory. Record the entry. Journal Entry Date Accounts December 31 Debit Credit The last transaction is the sale of inventory. Record the entry. (Record debits first, then credits. Explanations are not required. Show all amounts in thousands.) Journal Entry Accounts Debit Credit Date December 31 Requirement 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? Purchases of inventorythe perpetual system uses the account while the periodic system uses a account. Sale of inventorythe V records two journal entries, one to record the sales and one to update the inventory records while the only records the Requirement 3. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands), assuming the perpetual inventory system is used. (Show all amounts in thousands. Leave unused cells blank.) Report the appropriate account(s) on the balance sheet. Balance Sheet: Current assets: Report the appropriate account(s) on the income statement Income Statement: Requirement 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? Purchases of inventorythe perpetual system uses the of inventory-the records two journa only records the account while the periodic system uses a account Sale yrd the sales and one to update the inventory records while the inventory purchases Requirement 3. Report ending inventory, sales, cost of thousands), assuming the perpetual inventory system is Report the appropriate account(s) on the balance sheet. S profit on the appropriate financial statement (amounts in punts in thousands. Leave unused cells blank.) supplies Requirement 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? 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R thousands), assun periodic system perpetual system os, cost of goods sold, and gross profit on the appropriate financial statement (amounts in system is used. (Show all amounts in thousands. Leave unused cells blank.) - - - - - - - -- - - - - - - - -- - - - - - - - - - - - - Requirement 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? Purchases of inventorythe perpetual system uses the account while the periodic system uses a account. Sale of inventorythe records two journal entries, one to record the sales and one to update the inventory records while the V only records the ding inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in perpetual inventory system is used. (Show all amounts in thousands. Leave unused cells blank.) perpetual system periodic system punt(s) on the balance sheet. Balance Sheet Requirement 2. What differences do you notice in the journal entries between the perpetual system and the periodic system? Purchases of inventorythe perpetual system uses the account while the periodic system uses a account. Sale of inventorythe records two journal entries, one to record the sales and one to update the inventory records while the only records the Requirement 3. Report ending inven thousands), assuming the perpetual i inventory goods sold, and gross profit on the appropriate financial statement (amounts in used. (Show all amounts in thousands. Leave unused cells blank.) Report the appropriate account(s) on sales Balance Sheet: shipping Current assets