Question $2(30\%)$

ABC Ltd$.$ is a retailer company. ABC uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for ABC Ltd$.$ for the month of January $2021.$

$\backslash$table$[[$Date$,$Description,Quantity,$\backslash$table$[[$Unit Cost$/],[$Selling Price $($$$)]]],[$December $31,$Ending Inventory,$100,50],[$January $5,$Purchase,$200,55],[$January $5,$Total Freight Cost of $$1,000$ for purchase,,$],[$January $10,$Sale,$175,80],[$January $11,$Sale Return,$25,80],[$January $20,$Purchase,$60,65],[$January $21,$Purchase Return,$10,65],[$January $31,$Sale,$125,100]]$

Required:

Select one of the cost flow assumptions $($FIFO or Moving Average$),$

$($a$)$ calculate $($i$)$ cost of goods sold, $($ii$)$ ending inventory, and $($iii$)$ gross profit. $(15\%)$

$($b$)$ Journalize each transaction by following perpetual inventory system $(15\%)$