Merchandising Transactions: Periodic Inventory System Use the data in P2 for this problem.

Required

1. Prepare entries in journal form to record the transactions, assuming use of the periodic inventory system. (Use the Review Problem in this chapter as a model).

2. Most companies call the first line of the income statement net sales. Other companies call it sales. Do you think these terms are equivalent and comparable? What would be the content of net sales? Why might a company use sales instead of net sales?