Please answer should be in detail

BS ( Management ) 4th semester

Terminal ppr

Q.2 IBM sold merchandise to Reebok for $ 8,000 offering terms of 3/10, n/30. Reebok paid for merchandise within the discount period. Both companies follow perpetual inventory systems. Instruction: a) Prepare journal entries in the accounting records of Key Imports to account for this sale and the subsequent collection.Assume the original cost of the merchandise to IBM had been $4,500. (03) b) Prepare journal entries in the accounting records of Reebok to account for the purchase and subsequent payment. Reebok records purchases of merchandise at net cost. (03) c) Assume that because of a change in personnel, Reebok failed to pay for this merchandise within the discount period. Prepare the journal entry in the accounting records of Reebok to record payment after the discount period. (03) d) Why companies use perpetual inventory system also take an annual physical inventory? When is this physical inventory usually taken? Justify with reasons. (03) e) How does an annual audit by a CPA firm provide assurance that a company's account receivable is fairly presented in the company's financial statements ? (03)