Anderson Co. is 7% VAT registered company using periodic inventory system. Anderson Co. offers credit term 1/10, 1/30 with FOB Destination to all sales transaction. The adjusted balances as at November 30, 2021 are as follows Cash $138,080 Account Payable (included VAT) $32, 100 Account Receivable 12,840 8% Note Payable 12,000 Allowance for impairment Loss 500 Interest payable 240 Inventory 18,500 VAT Payable 3,520 Equipment 16,000 Share Capital - Ordinary 50,000 Accumulated Depreciation 2.000 Premium on Ordinary Share 25,000 Retained Earnings 60,060 During December 2021, the following events occur Dec 4 Sold $26.750 inventory on account to Bamboo shop (not a VAT registered entity). The price included 7% VAT and Anderson paid freight cost of $100 6 Paid one-third of amount due to creditor, Anderson received 2% discount. 7 Granted $1.070 discount (included VAT) to Bamboo shop for inventory returned. 10 Purchase $48,150 inventory on account from Catherine & Friends Co. (7% VAT registered entity) with credit term 2/10, 1/45, FOB Shipping point. Anderson paid $150 freight cost. The price excluded 7% VAT. 13 Received a $1.605 (excluded VAT) credit memorandum from Catherine & Friends Co for the return of the merchandise purchased on Dec. 10. 14 Received half of amount due from Bamboo Shop 15 Filed November's VAT to the Revenue Department. 19 Purchased $250 supplies by cash from Dorothy Co. (not a VAT registered entity). Anderson Co. recorded the whole amount as an asset. 20 Paid full amount due to Catherine & Friends Co. 21 Purchased $53,500 machine (price excluded 7% VAT) from EKKO Co. (a 7% VAT registered entity) and issued a $20,000 note with 5% interest. Paid cash for the rest. 25 Paid $21,400 advertising expense, with 3% withholding tax. Price included 7% VAT. 27 A $2,675 rent revenue was occurred and 3% tax was withheld by the payer. Price included 7% VAT. 29 Sold 107.000 inventory on account to Peter Co. (a VAT register entity). The price included 7% VAT. Anderson Paid freight cost of $200. 28 Paid $7,000 salary with 10% withholding tax and $350 social security 30 Received $856 utility bill (Price included 7% VAT) which will be paid next month. Addition information for month-ended adjustments: 1. Physical count of inventory costs $61,000. 2. Summarize VAT 3. Company estimates that 0.5% of Account Receivable is uncollectible. 4. Annual equipment depreciation is $2,400 5. Supplies on hand is $120. 6.8% Note payable dues on Mar 31, 2022 while 5% Note payable dues on May 1, 2022. Instructions: 1. Record journal entries for December, 2021. 2. Record adjusting entries for December, 2021. 3. Prepare Multiple step Income Statement and show the calculation of Cost of Goods Sold for December. 4. Complete the worksheet. Additional requirement: Record the journal entry if Anderson Co. uses the perpetual inventory system. The gross profit of company is 40%. 1. Record journal entry under perpetual system 2. Record adjusting entry for both periodic and perpetual systems 3. Prepare adjusted trial balance