DCDC Company is a retailer. The company had the following transactions during the first week of...

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DCDC Company is a retailer. The company had the following transactions during the first week of January, 2023: January 2 Purchased 120 units of merchandise from a wholesaler on account. The total gross invoice price of these merchandise was $8,520, terms were 3/10, n/60. January 6 Sold merchandise on account to a customer. The total sales price was $2,400, terms were 4/10, n/50. The total cost of this merchandise to DCDC Company was $852. DCDC Company records purchases at the gross sales price. Instructions: a. Prepare journal entries to record these transactions, including explanations, assuming DCDC Company uses a perpetual inventory system. b. Prepare journal entries to record the two transactions, including explanations, assuming that DCDC Company uses a periodic inventory system. c. Compute the cost of goods sold for the week of January (January1- January 7) assuming use of the periodic system. Assume that the ending inventory at December 31, 2021 was $1,450. On the other hand, the ending inventory as of January 7, 2022 was $9,118. (Demonstrate supporting calculations.) 2 DCDC Company is a retailer. The company had the following transactions during the first week of January, 2023: January 2 Purchased 120 units of merchandise from a wholesaler on account. The total gross invoice price of these merchandise was $8,520, terms were 3/10, n/60. January 6 Sold merchandise on account to a customer. The total sales price was $2,400, terms were 4/10, n/50. The total cost of this merchandise to DCDC Company was $852. DCDC Company records purchases at the gross sales price. Instructions: a. Prepare journal entries to record these transactions, including explanations, assuming DCDC Company uses a perpetual inventory system. b. Prepare journal entries to record the two transactions, including explanations, assuming that DCDC Company uses a periodic inventory system. c. Compute the cost of goods sold for the week of January (January1- January 7) assuming use of the periodic system. Assume that the ending inventory at December 31, 2021 was $1,450. On the other hand, the ending inventory as of January 7, 2022 was $9,118. (Demonstrate supporting calculations.) 2

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a Perpetual inventory system On January 2 to record the purchase of merchandiseDebit Merchandise Inv... View the full answer