On February 28, Discount Electronics Ltd. has three home entertainment systems left in stock. The purchase date, serial number, and cost of each of the three systems are as follows: Date Serial Number Cost Jan. 2 #1012 $2,400 Feb. 1 #1045 1,900 28 #1056 1,680 All three systems sell at a price of $2,600. By March 31, the company sold two systems and one system remained in inventory. Instructions a. Explain how Discount Electronics would use specific identification to determine the cost of goods sold and the cost of the ending inventory. b. Explain how Discount Electronics could manipulate its net income using specific identification by selectively choosing which home entertainment systems to sell to the two customers in the month of March. What would Discount Electronics cost of goods sold and gross profit be if the company wished to minimize net income? To maximize net income? Ignore income tax. c. What would Discount Electronics cost of goods sold and gross profit be if the company used FIFO? Ignore income tax. d. What would Discount Electronics cost of goods sold and gross profit be if the company used average cost? Ignore income tax. e. What guidelines should Discount Electronics consider when deciding whether to use specific identification or one of the other cost formulas to determine the cost of its inventory