Prepare journal entries for the above transactions and On 31 December Forest conducted physical count of inventory and found $264,500 inventory was on hand. Prepare two closing entries to update Cost of Goods Sold and the Inventory Account. Also, Compute gross profit in terms of amount and percentage for the year. Show your workings. (with clear steps , thank you)

Forest Ltd. (Forest) uses a periodic inventory system. The Trial Balance of Forest as at 30 November 2019 shows the following information: Dr Inventory, as at 31 December 2018 $150,000 Sales revenue Sales returns $15,000 Purchases $634,750 $1,850,000 During December, the following transactions took place: Dec 3 Dec 5 Dec 8 Forest purchased $250,000 inventory from Supplier A on credit. Forest sold goods to Kenny Corporation at the price of $100,000 on account, gross profit rate is 30%. Forest returned $30,000 inventory to Supplier A due to incorrect color of the goods. Forest sold goods to Sisi Corporation at $180,000 on credit, gross profit rate is 50%. Dec 10