Question 1: Inventory (20 marks) Sophia and Julia were passiouate about sking. Unfortunately, the two giels didn't make the cut for the Olympic Canadian Ski team so they decided to pursue this passion by opening their own ski shop, Rise&Glide. Pantal In 2017 Rise&Glide has a begining inventory of 150 pairs of skis, at a per-pair cost of $130. Dumng the year, Rise&Glide made the following purchases and sales: Transactions Units (in pairs) Retail Price (per pair) Purchase 1 340 Sale 1 280 $420 Purchase 2 120 Sale 2 250 $480 A Cost per pair of skis Purchase 1 $180 Purchase 2 $160 a) Rise&Glide uses periodic inventory system and FIFO cost assumption Determine the cost of goods sold, ending inventory, and gross margin for the fiscal year 2017. b) At the end of 2017, the net realizable value of each ski becomes $150. Determ me if Rise&Glide's inventory need a write-down, and if so, provide the joumal entry. Part 2 In the mid of 2018, the company realized that Bertha, their accountant, accidently recorded the inventory at the end of 2017 using weighted average cost instead of FIFO. a) How does this error affect COGS and net income for 2017 and 2018 (ignore the write down) b) BONUS question: Provide the correcting joumal entry