Question 1: (Total 10 marks) (a) Morton Supply Company uses a periodic inventory system. During September, the following transactions and events occurred. (4 marks) Sept. 3 Purchased 80 backpacks at $20 each from Cole Company, terms 2/10, n/30 Sept. 6 Received credit of $100 for the return of 5 backpacks purchased on Sept. 3 that were defective. Sept. 9 Sold 15 backpacks for $40 each to Starr Books, terms 2/10, n/30. Sept. 13 Paid Cole Company in full. - Instructions: Journalize the September transactions for Morton Supply Company. Answer: General Journal Account Title & Explanation Date Debit Credit (b) The following information belongs to Paradise Hardware Store: (4 marks) Oct 1. Beginning inventory: 200 units at $12 = $2,400 Oct 5. Purchases made during the period: 1800 units at $12 = $21,600 Oct 15. Sales made during the period: 1200 units at $24 = $28,800 Oct 31. Ending inventory: 800 units at $12 = $9,600 Required: Make journal entries to record above transactions assuming a periodic inventory system is used by Paradise Hardware Store. Answer: General Journal Account Title & Explanation Date Debit Credit (c) State the general formula to compute the cost of goods sold under periodic inventory system. (2 marks)