Question 3 (20 marks) A: ABC Company uses the perpetual inventory system and had the following transactions during August 2018: Date Transaction Amount June. 5 Purchased inventory on account $ 240,000 June. 9 Paid for transportation of goods purchased 25,000 June. 10 Returned defective merchandise to the seller 35,000 June. 15 Paid for goods purchased on August 5 ? Credit terms of invoice are 2/15, n/45. Required: Prepare the general journal entries to record these transactions. Explanations are not required. [9 marks]. B: Xcite Company uses Perpetual Inventory System. The following information is available for the month of March: Mar. 1 Beginning inventory 200 units @$15 Mar. 5 Purchased 80 units @$18 Mar. 10 Sold 120 units @$30 Mar.15 Purchased 140 units @$20 Mar.25 Sold 100 units @$30 Required: Prepare perpetual inventory record for Xcite Company using LIFO inventory costing method. (11 Marks) Question 2 (20 marks) Before year-end adjustments are made, the December 31, 2018 trial balance of Ahmad's Adventures contains revenue of $30,000 and expenses of $7,500. Adjustments are necessary for the following items: 1. Depreciation for the year is $2,000. 2. Revenue earned but not yet billed is $4,000. 3. Accrued interest expense is $1,000. 4. Supplies used, $3,500. 5. Revenue collected in advance that is now earned is $4,000. 6. Portion of prepaid insurance expired during the year is $2,750. Required: A. Record the above adjusting entries in 2018 Journal. [12 Marks] B. Open One T-account and post to Service Revenue account ONLY, then compute its adjusted balance as on December 31, 2018. (4 Marks) c. Calculate the correct Net Income (Net Loss) for Ahmad's Adventures for the year ended Dec.31, 2018 (After adjustments). (4 Marks)