Question #5 Purchases, Sales 12 marks 18 minutes The following merchandise transactions occurred in December. Both companies use a perpetual nventory system. Pickles Ltd. sold goods to Tomato Corp. for $68,000, terms 2/10, n/30, FOB shipping point. The inventory had cost Pickles $36,000. Dec. 3 7 Shipping costs of $900 were paid by the appropriate company. R Tomato returned unwanted merchandise to Pickles. The returned merchandise has a 11 Pickles received the balance due from Tomato. sales price of $2,100, and a cost of $1,150. It was restored to inventory. Ins tructions (a) Record the above transactions in the books of Pickles. (5marks) (b) Record the above transactions in the books of Tomato. (4 marks) (c) Calculate the gross profit earned by Pickles on the above transactions. (1 mark)