Question No. 2 (7) Claypool Hardware is the only hardware store in a remote area of northern Minnesota. Some of Claypool's transactions during the current year are as follows: Nov. 5 Sold lumber on account to Bemidji Construction $18,390. The inventory subsidiary ledger shows the cost of this merchandise was 9.255 Nov. 9 Purchased tools on account from Oxatonna Tool Company, $4,805 Dec. 5 Collected in cash the SI8, 390 account receivable from Bemidji Construction Dec. 9 Paid the $4.805 owed to Owatonna Tool Company Dec. 31 Claypool's personnel counted the inventory on hand and determined its cost to be S182,080. The accounting records, however, indicate inventory of $181.790 and a cost of goods sold of $540.321 The physical count of the inventory was observed by the company's auditors and is considered correct Instructions a. Prepare journal entries to record these transactions and events in the accounting records of Claypool Hardware (The company uses a perpetual entory system) (5) b. Prepare a partial income statement showing the company's gross profit for the year (Net sales for the year amount to 2,010,930) (2)