Question #1 - Prepare entries for purchases under a perpetual inventory system - (24 marks) 1 ToneLife Music sells musical instruments. The following data relates to ToneLife's inventory of guitars. On January 1, 2021, ToneLife had 12 guitars in inventory at a cost of $ 250 each. During January, the following transactions occurred: Jan. 1 Purchased 15 guitars at $ 250 each from International Music Centre (IMC) on account, terms n/30 4 Sold 2 guitars for cash at $ 370 each. 6 One of the two guitars sold on January 4 was returned because it was defective. A full cash refund was paid. 7 The defective guitar was returned to IMC for a credit on account. 16 Sold 21 guitars at $ 300 on account, terms 2/10, n/30. 18 Purchased 10 guitars from IMC for $ 250 each on account, terms n/30. 25 Paid the full amount owing to IMC. 26 Collected the balance owing from the January 16 sale. Required: Using the perpetual inventory system, prepare the journal entries to record ToneLife Music's January transactions