QUESTION 1 (12 marks) The following transactions for Best Tire Ltd. occurred during March 2019: March 4. Placed an order for $5,400 of merchandise on account from Bargain Inc., terms 2/10, n/30, FOB shipping point. Bargain Inc. shipped the goods on the same day. 5. Received the goods from Bargain Inc. and paid $100 for the delivery charges. 6. Received an order from a customer, W. Fence Corp. 11. Delivered merchandise to W. Fence Corp. at a selling price of $3,000 (cost $1,500) on account, terms 3/15, n/45, FOB destination. 11. Paid $25 for delivery of the goods to W. Fence. 12. Returned $600 of the merchandise purchased on March 4. 12. Sold $4,000 (cost, $2,000) of merchandise to cash customers. 13. Paid Bargain Inc. the amount due from the March 4 purchase. 18. W. Fence Corp. returned $500 of the merchandise it had purchased on March 11. The goods had cost Best Tire Ltd. $250. 23. Received payment from W. Fence Corp. for the amount owing from the March 11 sale. REQUIRED: Prepare the necessary journal entries in the books of Best Deal Tire Co. for the transactions using the perpetual inventory system. QUESTION 2 (4 marks) Suppose Bonzai Boards Inc. had sales of $180,000, operating expenses of $30,000, cost of goods sold of $110,000, and income tax expense of $12,000. 1. What was the gross profit percentage? 2. What is the significance of the gross profit %