II. CC Company is a merchandiser. The company accounted for inventory using a perpetual system. On December 31, 2020, CC reported 3 units of merchandise inventory at the cost of $25 per unit. CC entered into the following transactions and events during year 2021. February 1 February 21 March 1 March 5 April 10 April 15 April 25 Purchased 20 units of merchandise inventory from Supplier S1 on credit at the invoice cost of $30 per unit, with a credit term of 2/10, n/20. FOB destination with a freight charge of $100 in total paid in cash. Paid to Supplier $1. Sold 15 units to Customer C1 at a price of $35 per unit. C1 was a new customer and CC decided not to provide credit term. FOB shipping point with a freight charge of $100 in total paid in cash. Purchased 50 units of merchandise inventory from Supplier S2. S2 agreed to give a $1 trade discount if CC can pay immediately in cash. The invoice cost, net of trade discount was $36 per unit. CC paid cash immediately. FOB shipping point with a freight charge of $100 in total paid in cash. Sold 30 units to Customer C2 at a price of $40 per unit, with a credit term of 3/15, n/30. FOB destination with a freight charge of $100 in total paid in cash. Customer C2 found that 5 units of merchandise inventory purchased on April 10 were defective. C2 agreed to keep these merchandise inventory. So CC issued a credit memorandum to C2, offering $100 allowance. Received payment from Customer C2. a) Assume CC uses the weighted average costing system. Prepare the journal entries in 2021. b) Calculate the ending balance of inventory on December 31, 2021 and COGS for the year of 2021: 2021 COGS 2021.12.31 Merchandise inventory Weighted average