Question 3 (22 marks) Popular Press Shop ("PPS") sells presses with nationwide chain stores. At 31 December 2019, PPS's inventory amounted to $5 million. During the first two weeks of January 2020, PPS made only one purchase and one sale. These transactions were as follows: 10 January Purchased 60 machines from Great Company. The total cost of these machines was $400,000. Terms 3/15, 1/60. 14 January Sold 30 different types of products on account to Long Company. The total sales price was $280,000, 5/15, n/90. The total cost of these 30 units to PPS was $100,000 (net of the purchase discount). PPS has a full-time qualified accountant and a computer-based accounting system. Management wants the timely information about what items in inventory and what items have been sold. PPS records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory and accounts payable. Required: (a) Prepare journal entries to record the above transactions, assuming PPS uses a perpetual inventory system (6 marks) (b) Calculate the balance in the Inventory control account at the close of business on 14 January. Detailed calculations are required. (4 marks) (c) Prepare journal entries to record the above transactions, assuming PPS uses a periodic inventory system. (4 marks)