Question 01: ABC companies uses a perpetual inventory system and following are the transactions of the current year. Jan 05: Sold merchandise on account to XYZ Company on account at 400,000. The cost of merchandise in the ledger account shows 100,000. Jan 10: Purchase merchandise on account worth 50,000 Jan 15: Collected the receipts from Jan 05 from XYZ Company. Jan 20: paid the amount of Jan 10. Jan 25: The inventory in the record of ABC shows the amount of 300,000. Whereas, at year-end physical tour shows that the inventory balance to be 250,000. The company recorded the cost of goods sold to be 500,000. Required: a) Prepare journal entries to record the transactions using perpetual method. b) Compute the amount of gross profit if sales amount shown up to be 900,000. (use the cost of goods sold given in Jan 25 deduct inventory shrinkage amount to get the final amount of cost of goods sold) c) Record the transactions using the periodic method. Ignore Jan 25 entry as inventory shrinkage can also occur in perpetual and not in periodic. Assume if ABC Company has 700,000 amount in inventory beginning calculate ending inventory and cost of goods sold after assuming the above transactions. Also, prepare two closing entries