E8.8: (Periodic versus Perpetual Entries) Chippewas Company sells one product. Presented below is information for January for Chippewas Company. Jan.1 Inventory 100 units at $6 each. Jan.4 Sale of 80 units at $8 each. Jan.11 Purchase 150 units at $6.50 each. Jan. 13 Sale of 120 units at $8.75 each. Jan.20 Purchase 160 units at $7 each. Jan. 27 Sale of 100 units at $9 each. Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account. Instructions: A. Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry, to record the cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. B. Compute gross profit using the periodic system. C. Assume Chippewas uses a perpetual system. Prepare all necessary journal entries. D. Compute gross profit using the perpetual system. E8.8: (Periodic versus Perpetual Entries) Chippewas Company sells one product. Presented below is information for January for Chippewas Company. Jan.1 Inventory 100 units at $6 each. Jan.4 Sale of 80 units at $8 each. Jan.11 Purchase 150 units at $6.50 each. Jan. 13 Sale of 120 units at $8.75 each. Jan.20 Purchase 160 units at $7 each. Jan. 27 Sale of 100 units at $9 each. Chippewas uses the FIFO cost flow assumption. All purchases and sales are on account. Instructions: A. Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry, to record the cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. B. Compute gross profit using the periodic system. C. Assume Chippewas uses a perpetual system. Prepare all necessary journal entries. D. Compute gross profit using the perpetual system