Claypool Hardware Is the only hardware store In a remote area of northern Minnesota. Some of Claypool's transactions during the current year are as follows. Mov.S Sold lumber on account to Bemidji construction, $13,390. The inventory subaidiary ledger ahows the cost of this merchandise van $9,105 Nov.9 Purchased toola on account from Ovatonna Tool Company, $3,800. Dec.5 Collected in cash the S13,390 account receivable from Beaidji Construction . Dec.9 Paid the $3,800 oved to Ovatonna Tool Company Dec.31 Claypool's personnel counted the inventory on hand and determined its cost to be $182,080. The accounting records, however, indicate inventory of $183,790 and a cost of goods sold of $695,222. The physical count of the inventory vas observed by the company's auditors and is conaidered correct. Assume that an index of key business ratios in your library shows hardware stores of Claypool's approximate size (in total assets) average net sales of $1 million per year and a gross profit margin of 25 percent Required: a. Prepare journal entries to record these transactions and events in the accounting records of Claypool Hardware. (The company uses a perpetual inventory system.) b. Pre c. Claypool purchases merchan pare a partial income statement showing the company's gross profit for the year. (Net sales for the year amount to $1,024,900.) dise ihventory at the same wholesale prices as other hardware stores. Due to its remote location, r, the company must pay betwee n $18,000 and $20,000 per year in extra transportation charges to receive delivery of merchandise. (These d. Does the business appear to suffer or benefit financially from its remote location? additional charges are included in the amount shown as cost of goods sold.) Complete this question by entering your answers in the tabs below