J. Zheng, a former professional star, operates Zheng's Tennis Shop at the Yalong River Resort. At the beginning of the current season, the ledger if Zheng's Tennis Shop showed: Cash $2,200, Inventory $1,800, and J. Zheng, Capital $4,000. The following transactions were completed during April.

Apr 4 Purchase racquets and balls from Jay-Mac Ltd. $760, FOB shipping point, terms 2/10, n/30. 6 Paid freight on purchase from Jay-Mac $40 8 Sold merchandise to member $1,150, terms n/30. The merchandise sold had a cost of $790. 10 Received credit of $60 from Jay-Mac for a racquet that was returned.

11 Purchased tennis shoes from Li Sports for cash, $420. 13 Paid Jay-Mac in full. 14 Purchased tennis shirts and short from Everett Sportswear $800, FOB shipping point, terms 3/10, n/60. 15 Received cash refund of $50 from Li Sports for damaged merchandise that was returned. 17 Paid freight on Everett Sportswear purchase $30 18 Sold merchandise to members $980, terms n/30. The cost of the merchandise sold was $520. 20 Received $600 in cash from members in settlement of their accounts. 21 Paid Everett Sportswear in full. 27 Granted an allowance of $40 to members for tennis clothing that did not fit properly. 30 Received cash payments on account from members, $820. Based on the physical inventory count, the inventory at the end of April is P3,132.

1. Using the perpetual inventory system, a. Journalize the April transactions. b. Prepare the income statement through gross profit for the period ended April 30, 2020.

2. Using the period inventory system, a. Journalize the April transactions. b. Determine the cost of goods sold as of April 30, 2020.