Nash Company sells one product. Presented below is information for January for Nash Company.

Jan. 1 Inventory 122 units at $4 each

4 Sale 101 units at $8 each

11 Purchase 164 units at $6 each

13 Sale 132 units at $9 each

20 Purchase 169 units at $6 each

27 Sale 106 units at $10 each

Nash uses the FIFO cost flow assumption. All purchases and sales are on account.

1. Assume Nash uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 116 units.

- Compute gross profit using the periodic system. Gross profit=?

2. Assume Nash uses a perpetual system. Prepare all necessary journal entries.

- Compute gross profit using the periodic system. Gross profit=?

Could explain more about how to calculate on part 2 about how to record sale and how to record the cost of inventory?