Question 1 Prepare general journal entries for Delta Corporation, a wholesaler of children's clothing, based on the following information. Assume all discounts are taken if paid within the discount period. Record your journal entries in the space provided on page 4. Explanations are not required. Feb 7 Purchased $60,000 of clothing inventory from ABC Imports Ltd with terms 2/10, n/30, FOB shipping point. Feb 9 XL Freight delivered the Feb 7 purchase. The $800 invoice was paid at that time. Feb 10 Sold $7,600 of merchandise on credit to Jayne's Children's Wear with terms 2/10, n/30. Cost of the goods sold was $3,800. Feb 11 Returned to ABC Imports $4,000 worth of product that was unsatisfactory. Feb 16 Paid the outstanding balance to ABC Imports. Feb 17 Jayne Brown, owner of Jayne's Children's Wear, complained that there was minor damage to the product purchased on February 10. She was given a $200 reduction in price and kept the product. Feb 20 Received payment of the remaining balance owing from Jayne's Children's Wear. Question 2 Epsion Inc. wholesales wicker chairs and sells them for $100 each. On June 1, Epsilon had 50 wicker chairs in opening inventory costing $60 per chair. The following buying and selling activity occurred in June. Purchases: June 3 300 chairs at $61 per chair June 15 200 chairs at $62 per chair June 18 100 chairs at $63 per chair Sales: June 10 June 20 150 chairs 350 chairs Required: Calculate the value of the ending inventory, total cost of goods sold and gross profit using the moving weighted average method. Round all per unit costs to the nearest cent, and all total costs to the nearest dollar. Use the worksheet and space provided on page 4. ii. If the FIFO method was used instead, would the cost of goods sold be higher or lower than the moving weighted average method. Explain. Use the space provided on page 5 for your answers. Question 3 The following amounts appeared on Bradley Company's adjusted trial balance on December 31, 2016 reflecting the results of the latest year of operations: Credit Debit $ 46,500 192,600 $ 52,500 178,475 24.000 318,000 Account Titles Inventory Other assets Liabilities Megan Bradley, Capital Megan Bradley, Withdrawals Sales Sales discounts Sales returns & allowances Cost of goods sold Sales salaries expense Rent expense - selling space Store selling supplies expense Advertising expense Interest expense Office salaries expense Rent expense - office space Office supplies expense Totals 4,875 21,000 123,900 43,500 15,000 3,750 27,000 2,000 39,750 3,900 1,200 $548,975 $548,975 Required - Prepare a classified, multiple-step income statement for the year. Use the template provided on page 6