Dundas Desks buys desks for $80 each and sells them for $140 each. On 1 August 2019, 86 desks were in inventory. Dundas Desks completed the transactions below during August.

A physical inventory count taken on 31 August 2019 showed 63 desks in stock.

Required

(a) In two columns, and ignoring GST, prepare general journal entries to record the transactions assuming:
i. a perpetual inventory system is used 

ii. a periodic inventory system is used. 

Narrations are not required.

(b) Assuming Dundas Desks closes its accounts at month end, prepare relevant entries to close the accounts under both inventory systems.

(c) Prepare two separate income statements showing gross profit and profit for August, assuming that:

i. the perpetual inventory system was used 

ii. the periodic inventory system was used.

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Aug. 234 4 Co 8 10 12 13 18 20 23 Purchased 140 desks on account. Terms: 2/10, n/30, EXW supplier's warehouse. Paid freight cost of $120 on 2 August purchase. Sold 80 desks on account. Terms: 3/10, n/30, DDP acquirer's warehouse. Paid freight cost of $60. Returned 30 of the desks purchased on 2 August and paid the amount due on the desks retained in stock. A customer returned 11 of the desks sold on 4 August. The desks were not defective and were returned to stock. Purchased 72 desks on credit. Terms: 2/10, n/30, EXW supplier's warehouse. Received payment from customer for the amount due on 4 August sale. Sold 140 desks for cash at $120 each. Six of the desks sold on 18 August were returned by the customer for a cash refund. The desks were not defective. Paid the supplier the amount owed for the 12 August purchase.