insert Draw Page Layout Forms Dale Review 2 Calibri (Body) BLU "11 S A AA EE P EED Wrap To Merge & Centre Percentage KB-% -%8 Conditional Format Formatting as Table Cell Styles +06/04 Perpetual inventory Gronprofit margn Grosspredt/Net sales Gross profiteSales.COGS 1 CPI sels computer peripherals. At December 31, 2015, CPI's inventory 2 amounted to $500.000. During the first week in January 2016, the company made only one purchase and one sale. These transactions were e as follows Jan 2 inventory Accounts payable Accounts receivable Sales revenue COGS Sales 242 COGS Grow profit 10000 Grow profit marin 10000 Jan. 2 6100 Jan. 6 Purchased 20 modems and 80 printers from Sharp. The total cost of these machines was $25.000 terms 3/10, 7:50 Sold 30 different types of products on account to Pace Corporation. The total sales price was $10,000, terms 5/10 1/90. The total cost of these 30 units to CPI was $6.100 (net of the purchase discount) Inventory SODODO $100 * CPI has a full-time accountant and a computer based accounting system It records sales at the gross sales price and purchases anet cost and maintains subsidiary lodgers for accounts receivable inventory, and accounts payable 2010 24250 Purchase Accounts payable Acebe Sales revenues COGS 10000 500000 25 0000 24250 19 Instructions 21 a. Briefly describe the operating cycle of a merchandising company 22 identify the assets and liabilities directly affected by this cycle 24 b. Prepare joumal entries to record those transactions, assuming that CPI uses a perpetual inventory system 22 c. Compute the balance in the inventory account at the close of business 38 on January 6 294. Prepare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system 32. Compute the cost of goods sold for the first week of January assuming 3 use of the periodic system (Use your answer to partc as the ending inventory 36. Which type of inventory system do you think CPI most likely would 37 use? Explain your reasoning Compute the gross profit margin on the January 6 sales transaction COGS Purchases Inventory COGS 518150 500000 5110 6100