Case - 2: Al-Faisal Company is a well-known perfume trader in Oman. The company was established in 1976 and is trading local and international perfumes through five of its stores. Recently it has added watches, cosmetics and accessories in its inventory along with perfumes. The company has engaged in the following transactions in April 2020. April 1 Purchased perfumes on account from Ahamed for OMR 6,000, terms 2/10, 1/60. 2 Sold perfumes on account to customers for OMR 5,500, terms 3/10, n/60. The cost of merchandise sold was OMR 3,800. 5 Received credit from Ahamed for perfumes retumed OMR 200. 9 Received collections in full, less discounts, from customers billed on April 2. 10 Paid Ahamed in full, less returns and discount. 11 Purchased supplies for cash OMR 700. 12 Purchased perfumes for cash OMR 2,600. 15 Received OMR 100 refund for return of poor-quality perfumes from supplier on cash purchase 17 Purchased perfumes from Salim for OMR 1,500, terms 3/10, 1/30, FOB shipping point. 19 Paid freight on May 17 purchase OMR 50. 24 Sold perfumes for cash OMR 4,600. The cost of perfumes sold was OMR 3,200. 25 Purchased perfumes from Basim for OMR 900, terms 3/10,n/30. 27 Made refunds of cash to customers for returned perfumes OMR 150. The returned perfumes has cost OMR 120. Question - 2: a. You are required to prepare joumal entries to record the transactions, when the company uses; i. Periodic Inventory System, and (3.5 Marks) ii. Perpetual Inventory System. (3.5 Marks) b. The periodic inventory system does not require an adjusting entry to record inventory shrinkage. Comment