PART 2 - WRIT Written Question 1 On January 5, 20X2, William's Watches sold 250 watches on credit for $150 each to Samuel's Store. The cost of each watch for William's Watches was $100 each. Terms for the sale were FOB destination and the applicable freight costs are $35 which were paid in cash on January 5 . Samuel's Store received the watches on January 5. William's Watches initially estimated 30 watches to be returned. On January 10, 202, Samuel's Store returned 20 watches (they were not damaged, and no freight costs were incurred when returning them). On January 20, Samuel's paid the amount owed to William's Watches. Record the journal entries that Williams Watches (the seller) should record for the above events. Then, record the journal entries that Samuel's Store (the buyer) should record for the above events. Assume both companies report under IFRS and use perpetual inventory systems. (Ch. 5) Written Question 2 Alberta Inc. uses a perpetual inventory system and reports under IFRS. Please record the June transactions on Alberta Inc.'s books. (Ch. 5) June 4: Purchased merchandise on account from Company A Ltd. at a cost of $50,000, FOB shipping point. June 5: Purchased supplies for $2,800 cash. Prior to this purchase, the balance in the supplies account was $400. June 7: Freight charges of $1,450 were paid by the appropriate party on June 4 purchase of merchandise. June 9: Shipped merchandise costing $16,000 to Company B Ltd. for $24,000 on account, FOB destination. Alberta Ltd. expects sales returns to be 10% of sales. The merchandise was received by Company B on June 10 . June 11: Freight charges of $620 were paid by the appropriate party pertaining to the above shipment. June 17: Received the balance due from Company B Ltd. June 18: Paid Company A Ltd. the balance due. June 20: Purchased merchandise from Company C Inc. for $7,775 cash. June 22: Sold inventory costing $12,000 to Company D Inc. for $18,000 on account, FOB shipping point. Alberta Ltd. expects sales returns to be 10% of sales. June 23: Freight charges of $168 were paid by the appropriate party on the June 22 sale of merchandise. June 28: Company D Inc. returned merchandise that it bought on June 22 that Alberta sold to them at a price of $3,000 (related cost was $2,000 ). This merchandise was not damaged. June 30: The company counted its supplies at the end of the month and determined that the cost of supplies on hand had a cost of $1,800