SUN sells washers. At December 31, 2020, SUN's inventory amounted to $300,000. During the first week of January 2020, the company made only one purchase and one sale. These transactions were as follows: Jan. 5 Purchased 70 machines from Beth, Inc. The total cost of these machines was $60,000, terms 2/10, n/30. Jan. 10 Sold 40 different types of products on account to Air Corporation. The total sales price was 43,000, terms3/10, 1/60. The total cost of these 40 units to SUN was $23,000 (net of the purchase discount). SUN has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions a. Briefly describe the operating cycle of a merchandising company. Identify the assets and liabilities directly affected by this cycle. b. Prepare journal entries to record these transactions, assuming SUN uses a perpetual inventory system. c. Compute the balance in the Inventory control account at the close of business on January 10, d. Prepare journal entries to record the two transactions, assuming that SUN uses a periodic inventory system c. Compute the cost of goods sold for the two weeks of January assuming use of the periodic system. 1. Which type of inventory system do you think SUN most likely would use? Explain your reasoning. g. Compute the gross profit margin on the January 10 sales transaction