Forest Ltd. (Forest) uses a periodic inventory system. The Trial Balance of Forest as at 30 November 2019 shows the following information:

	Dr	Cr
Inventory, as at 31 December 2018	$150,000
Sales revenue		$1,850,000
Sales returns	$15,000
Purchases	$634,750

During December, the following transactions took place:

Dec 3	Forest purchased $250,000 inventory from Supplier A on credit.
Dec 5	Forest sold goods to Kenny Corporation at the price of $100,000 on account, gross profit rate is 30%.
Dec 8	Forest returned $30,000 inventory to Supplier A due to incorrect color of the goods.
Dec 10	Forest sold goods to SiSi Corporation at $180,000 on credit, gross profit rate is 50%.

Required:

(a) Prepare journal entries for the above transactions. (8 marks)

(b) On 31 December Forest conducted physical count of inventory and found $264,500 inventory was on hand. Prepare two closing entries to update Cost of Goods Sold and the Inventory Account. (5 marks)

(c) Compute gross profit in terms of (i) amount and (ii) percentage for the year. Show your workings. (4 marks)