Section C (42%) - Long Questions Answer any THREE out of the FOUR questions in this section in the answer book provided. If you answer more than three questions, only the first three attempted questions will be marked. Indicate in your answer book clearly which three questions you are attempting. Each question carries 14 marks. Explanations of the journal entries are not required. Correct your answers to 2 decimal places. Show your workings. Question ci Part I Laura Company uses a perpetual inventory method. Prepare the journal entries for the following transactions: 2 June Purchased goods from Nancy Company for $800 on account. Returned $80 of the goods to Nancy Company. Paid the amount owed to Nancy Company. Sold all the goods on hand from Nancy Company with gross profit rate of 64%. The payment will be collected within 30 days. (10 marks) Part II Buddy Company uses a periodic inventory system. During the current year, the company had beginning inventory $10,000, purchased goods at a cost of $25,000, and ending inventory $8,000. The total sales for the year were $49,750 and the sales returns amounted to $1,250. Required: (a) Compute the amount of cost of goods sold and the gross profit. (2 marks) (b) Suggest TWO factors to be considered when selecting periodic inventory system. (2 marks)