Arppel Company uses a periodic inventory system and closes its accounts annually on 31 December. Below are extracted from the books of the Company: Account balance as at 31 Dec 2020 Inventory $42,000 Account balance as at 31 Dec 2021 Purchases $440,000 Sales $890,000 Sales Returns $22,000 A complete physical inventory taken as at 31 December 2021 indicates goods costing $48,000 remains in stock. Required: (a) Compute (i) the cost of goods sold; (ii) gross profit; and (iii) the gross profit rate (in %) for the year 2021. Show workings. (6 marks) (b) Prepare two closing entries to create the Cost of Goods Sold account and update the Inventory (5 marks) account.