AUSZUZULT Mailings Review View Tell me Alice Abbe AaBbCcDe AabbccddeAaBb rocedat A Normal No Spacing Heading Heading 2 Title Question 3 (18 marks) Rance Ltd is a distributor of footballs and has 400 footballs on hand at a cost of $50 each. The selling price of a football is $150. The following transactions occurred for Rance Ltd during June: June 2 5 29 30 Purchased 450 footballs. Returned 50 of the footballs purchased on June 1. Sold 200 footballs. 20 footballs were returned to Rance Ltd relating to the sale on June 5. Sold 50 footballs. All purchases and sales are for cash and all returns were not damaged and are available for re- sale. A stocktake at period end revealed 555 footballs on hand. Required: (a) Record the above transactions for the month of June in the general journal using the periodic inventory method. Journal entries should include the four closing entries to determine the cost of goods sold and ending inventory. Narrations are not required. Ignore GST. [8 marks] (6) Record the above transactions for the month of June in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST. [8 marks] (c) Briefly explain the concept of lower of cost and net realisable value for inventory. [2 marks]