Bates uses Periodic Inventory system . following transactions.

a. bates invested additional $70000 cash in the business.

b. Received $125,000 in advance from the state of iowa for service which is be performed at a later.

c. Received merchandise (will be resold to customers ) purchases on account for $19,000.the terms were 2/10: n/30 ,FOB origination and the invoice included a $100 freight charge .Invoice is for $19,100.

d. paid a six month insurance premium of $1800.

e. Purchased a $45000 short term certificate of deposit from Home Saving Bank . The CD is considered a short term investment .