Gamit Ltd. completed the following selected (and summarized) transactions during 20X5:

1. Merchandise inventory on hand January 1 20X5, $105,000 (at cost, which was the same as lower of cost or market)
2. During the year, purchased merchandise for resale at a cost of $200,000 on credit, terms 2/10, n/30. Immediately paid 85% of the cash cost.
3. Paid freight on merchandise purchased, $10,000 cash.
4. Paid 40% of the accounts payable within the discount period. The remaining payables were unpaid at the end of 20X5 and were still within the discount period.
5. Merchandise that had a quoted price of $3,000 (terms 2/10, n/30) was returned to a supplier. A cash refund of $2,940 was received because the goods were unsatisfactory.
6. During the year, sold merchandise for $370,000, of which 10% was on credit.
7. A television set caught fire and was damaged internally; it was returned by the customer. The set was originally sold for $600, of which $400 cash was refunded. The set originally cost the company $420. Estimates are that the set, when repaired, can be sold for $240. Estimated repair costs are $50, and selling cost are estimated to be $10.
8. Operating expenses (administrative and distribution) paid in cash, $120,000; includes the $10,000 shown in c) above.
9. Excluded from the purchase given in b), and from the ending inventory, was a shipment for $7,000 (net of discount). This shipment was in transit, FOB shipping point, at December 31 20X5. The invoice has arrived.
10. Paid $50 cash to repair the damaged television set: see g) above.
11. The ending inventory (as counted) was $110,000 at cost, and $107,000 at NRV. Income tax expense is $19,500.

Accounting policies followed by the company are as follows:

1. The fiscal year-end is December 31.
2. A periodic inventory system is used.
3. Purchases and accounts payable are recorded net of cash discounts.
4. Freight charges are allocated to merchandise when purchased.
5. All cash discounts are taken.
6. Used and damaged merchandise is carried in a separate inventory account.
7. Inventories are reported at the lower of cost or market (NRV), and the allowance method is used.

Required:

1. Give the journal entries for transactions b) through j).
2. Give the end of period adjusting entries (item k).
3. Prepare a multi-step statement of comprehensive income for 20X5. Assume that 20,000 common shares are outstanding at year-end..