(a) Using the periodic inventory system, prepare the journal entries to record the transactions. (use the provided General Journal paper)

(b) Calculate the cost of goods sold in February.

(c) Calculate the gross profit and gross profit margin for March.

1. Millwood Framing sells picture frames. On February 1, 2008, Millwood had 420 frames in inventory at a cost of $10.50 each. During February, the following transactions occurred. ( 25 Marks) Feb. 2 Sold 355 frames on account for $24.00 each, terms 2/10 n/30 4 Customer returned 20 of the frames, which were returned into inventory 11 Customer paid the account in full 15 Purchased 250 frames from Mitch's Art Supplies at $10.50, terms n/30 17 Freight of $600 on the purchase from Mitch's was FOB destination and was paid by the appropriate party 18 Sold 200 frames at $25 each for cash, providing a 5% cash discount to the customer 19 Purchased 90 frames from Canada Wood Products for $11 each. Terms 2/10 net/30 21 Returned 5 frames to Canada Wood Products because they were defective 27 Paid the Canada Wood Products account within the discount period. 28 Counted the remaining inventory and determined that it has a value of $2,365