Alpha Company uses the periodic Inventory system for purchase & salofmerchandse Discount terms for both purchases & salles are, 2/10, n30 and the gross method ts used. Unless otherwise noted, FOB Destination will apply to all purchases& sales. The value of Inventory Is based on periodic system. On January 1, 2016, beginning Inventory consisted of 350 unlts of widgets costing $10 each. Alpha prepares monthly Income statements The following events occurred during the month of Jan: Date Actvity a Jan.3 Purchased on account 350 widgets for $11 each b. Jan.5 Sold on account 400 widgets for $30 each. Pald freight out with petty cash of $150. c Jan. 10 Purchased on account 625 widgets for $12 each. Shipping cost for the January 10 purchased merchandise was $400 was pald with a cheque by Alpha directly to the freight company. d Jan. 11 Jan. 12 Returned 50 widgets received from Jan. 10 purchase as they were not the correct Item ordered t Jan. 13 Paid for the purchases made on lan 3. Sold on account 550 widgets for $30 each. Pald freight out with petty cash of Jan 21 $250 Authortze credit without retum of goods for 50 widgets sold on lan. 21 when customer advised that they were recetved In defective condition h. Jan. 22