"B. J. Stewart Furniture Company had the following transactions relating to the purchase and sale of leather sofas. There was no beginning inventory. " "January 1:Purchased 100 units on account at $1,000 per unit January 5:Sold 75 units on account at $2,000 per unit (Two entries are provided; one for the selling price, one for cost) January 8:Customers returned 3 defective units (Two entries are provided; one for the selling price, one for cost) Janaury 11:Stewart returned the 3 defective units to its supplier for credit on account" (a) Assuming Stewart uses a perpetual inventory system, what journal entries would be needed to record the preceding activity? Include memo entries. (7 points) (b) Assuming Stewart uses a perpetual inventory system, show the calculation of gross profit. (2 points) (c) If Stewart uses a perpetual system, would there be any need to perform a periodic physical count of leather sofas on hand? (1 point)

GENERAL JOURHAL Accounts Debit Credit Date 1-Jan 5-Jan 5-Jan 8-Jan 8-Jan 11-Jan (b) (c)