Part 1: Inventory Systems (5 MARKS) Oman Retail Company began operations in August and completed these transactions during the first month of operations. Aug. 1 Aug. 2 Purchased OMR 5,000 of merchandise from V. Co. with terms of 1/10 n/30 (invoice #723). Paid OMR 100 in shipping costs for merchandise purchased from V. Co. (ck #843). Returned OMR 600 of goods to V. Co. Sold OMR 7,000 of goods to C. Co. with terms of 2/10 n/40 (the goods cost OMR 4,000). Aug. 5 Aug. 7 Aug. 8 Paid V. Co. with check #844. Aug. 10 Purchased OMR 6,000 of goods for resale from W. Co. with terms 3/5 n/45 (invoice #298). Aug. 11 C. Co. returned OMR 500 of merchandise. Aug. 12 Sold OMR 3,000 of merchandise to Ali Co. with terms 2/10 n/40 (the goods cost OMR 2,000). Aug. 14 Received full payment from C. Company. Aug. 25 Paid in full W. Co. Aug. 28 Received full payment from Ali Co. Required: a. Prepare journal entries to record these transactions using perpetual inventory syster b. Prepare journal entries to record these transactions using periodic inventory system. C. What is the difference between perpetual and periodic inventory systems? Part 2: Inventory Cost Flow Methods (5 MARKS) Ibra Company had the following transactions for the month of June. Date Units Per Unit 150 3.00 Transaction Beginning Inventory Purchase Sale 150 3.50 10.00 1-Jun 5-Jun 10-Jun 15-Jun 20-Jun 25-Jun Total 450.00 525.00 2,500.00 800.00 2,025.00 6,000.00 250 200 450 Purchase Purchase Sale 4.00 4.50 600 10.00 Required: a. Compute total goods available for sale (in units and in riyals) b. Compute total sales (in units and in riyals) C. Compute the ending inventory in units. d. Compute the cost of goods sold using the following methods. i. First in First Out (FIFO) ii. Last in First Out (LIFO) iii. Average Method e. Compute the cost of ending inventory using the following methods. i. First in First Out (FIFO) ii. Last in First Out (LIFO) iii. Average Method f. Compute gross profit using the following costing methods. i. First in First Out (FIFO) ii. Last in First Out (LIFO) iii. Average Method g. When is the specific identification method used? What types of companies might use it? h. In the periods of rising prices, i. The cost flow method with the lowest net income is ii. The cost flow method with the highest net income is ili. The cost flow method with the Lowest ending inventory is iv. The cost flow method with the Highest ending inventory is Part 3: Special Journals (5 MARKS) Sur Company began operations in January and completed these transactions during the month. Jan. 1 - Purchased for cash OMR 4,000 of merchandise inventory, FOB Shipping point from TRQ Merchandising Company Jan. 2 - Purchased on account OMR 5,000 of merchandise inventory, terms 2/15, n 45, FOB Destination from RST Trading Company. Jan. 5 - Sold for cash OMR 2,000 of merchandise inventory, FOB Shipping point with a cost of goods sold of OMR 1,200 to Bader Company Jan. 8 - Sold on account OMR 1,000 of merchandise inventory, terms 3/10, n 30, FOB Destination with a cost of goods sold of OMR 600 to Ali Company. Jan. 10 - Sales returns of OMR 200 of merchandise sold to Ali Company because of defects. Jan. 11 - Purchase returns of OMR 500 of merchandise to RST Trading due to damages in shipment. Jan. 15 - Paid RST Trading for the purchases made on account. Jan. 18 - Received payment from customer Ali Company for sold goods on account. Jan. 25 - Acquired land OMR 50,000 by issuing bonds. Jan. 30 - Paid the utility bill for OMR 300. Required: a. Enter the following transactions in the special journals. b. What is the purpose of special journals