QUESTION $1(30$ points$)$

Elements of the competency: To collect and analyze accounting information $(01H8\mathrm{.}1)$

$1\mathrm{.}3$ Appropriate measurement and processing of amounts concerned.

$1\mathrm{.}5$ Accurate determination of the effect of the

operation on different accounts.

Elements of the competency: To record all operations that makes up the accounting cycle $(01H8\mathrm{.}2)$

$2\mathrm{.}5$ Presence of all data necessary for effective use of the information.

Fanzi Furniture Company engaged in the following transactions during March of the current year:

March $5^{th}$ : Purchased store supplies on credit terms of eom, $$6,800$ before taxes

March $8$ : Purchased inventory of $$54,000$ plus a freight charges of $2,200.$ Credit terms $\frac{3}{15},\frac{n}{30}$

March $9$: Returned damaged goods purchased on March $8$:$$2,000$ before taxes

March $10$: Sold goods on credit terms $\frac{2}{15},\frac{n}{30},$$$21,600.$ Fanzi,s cost of these goods was $$13,000$

March $12$: Received returned inventory from March $10$ sale : $$5,000$ before taxes

March $15$: Paid supplier for the goods purchased on March $8$

March $20$: Received $$10\mathrm{.}000$ in partial settlement of the Mach $10$

March $30$: Received and paid the electricity bill : $$1,500,$ before taxes

Required

Journalize the preceding transactions, with the sales taxes, on the books of Fanzi Furniture Company. The company uses the perpetual inventory system. Give short explanations

Suppose the balance in inventory was $$45,500$ on March $1.$ What is the balance in inventory on March $30?$

NOTE: Taxes are $14\mathrm{.}975\%$