Question 2 (Total 17 marks) Part A ABC Company completed the following transactions in April, assume the perpetual inventory system was used: Date of collection S Sales Return Date $ Date Apr 4 Apr 12 Apr 18 Apr 22 Apr 24 Credit Sales Sales Sales Term Total $ 720 2/10, n/30 1,200 3/10, n/30 6,000 1/10, n/30 1,680 2/10, n/60 1,920 2/10, n/30 N/A Apr 15 Apr 21 Apr 24 Apr 28 N/A 480 1,200 380 480 Apr 9 Apr 17 Apr 30 Apr 28 Apr 29 Required Prepare the journal entry for the (a) Apr 18 sale, the merchandise sold had a cost of $4,200. (b) Apr 24, sales return, the merchandise returned had a cost of $240. (C) Apr 28 collection of cash from customer. (6 marks) Part B DEF Ltd uses a periodic inventory system. The beginning inventory of a particular product, and the purchases during the current year, were as follows: Jan 1 Mar 18 Jul 31 Dec 26 Beginning inventory...... Purchase Purchase Purchase Total available for sale in year 300 units @ $6.50 = 1,100 units @ $7.50 = 1,500 units @ $7.80 = 1,100 units @ $8.50 = 4.000 units $ 1,950 8,250 11,700 9.350 $31.250 At December 31, the ending inventory of this product consisted of 1,450 units. Determine the cost of the year-end inventory and the cost of goods sold for this product under each of the following methods of inventory valuation: (a) First-in, first-out; (b) Average cost (round your answers to the nearest dollar). (6 marks) Part C Briefly explain ANY TWO factors to determine the following inventory system being used: (i) Perpetual inventory system; (ii) Periodic inventory system