Appendix 2 PR 5-10B Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash $125,000 Accounts Receivable Dividends $ 275,000 Inventory, July 1, 2048 340,000 Sales 6,590,000 415,000 Purchases Estimated Returns Inventory, 4,100,000 Purchases Returns and Allowances July 1, 2048 32,000 25,000 Purchases Discounts 13,000 Office Supplies 45,000 9,000 Freight In Prepaid Insurance 18,000 Sales Salaries Expense 580,000 Land 300,000 Advertising Expense 315,000 Store Equipment 550,000 Delivery Expense 18,000 Accumulated Depreciation- Depreciation Expense- Store Equipment 190,000 Store Equipment 12,000 Office Equipment 250,000 Miscellaneous Selling Expense 28,000 Accumulated Depreciation- Office Salaries Expense 375,000 Office Equipment 110,000 Rent Expense 43,000 Accounts Payable 85,000 Insurance Expense 17,000 5,000 30,000 Office Supplies Expense Customer Refunds Payable Salaries Payable 9,000 Depreciation Expense- 6,000 Unearned Rent 4,000 Office Equipment 16,000 50,000 Miscellaneous Administrative Expense Notes Payable 300,000 Rent Revenue 32,500 Common Stock 520,000 Interest Expense 2,500 Retained Earnings Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2049. The inventory as of June 30, 2019, was $508,000. The estimated cost of customer returns inventory for June 30, 2099, is estimated to increase to $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2049. 4. What would be the net income if the perpetual inventory system had been used