Lets it be known this is a practice question and I have to do a similar one for my homework

Appendix PR 5-10A Periodic inventory accounts, multiple-step income statement, closing entries On July 31, 2012, the balances of the accounts appearing in the ledger of Sagebrush Company are as follows: Cash $ 18,300 Sales Returns and Allowances $ 12,000 Accounts Receivable 72,000 Sales Discounts 8,000 Merchandise Inventory Purchases 700,000 August 1, 2011 90,000 Purchases Returns and Allowances 6,000 Office Supplies 3,000 Purchases Discounts 4,000 Prepaid Insurance 4,500 Freight In 30,000 Land 300,000 Sales Salaries Expense 300,000 Store Equipment 270,000 Advertising Expense 55,000 Accumulated Depreciation- Delivery Expense 9,000 Store Equipment 55,900 Depreciation Expense- Office Equipment 78,500 Store Equipment 6,000 Accumulated Depreciation- Miscellaneous Selling Expense 10,000 Office Equipment 16,000 Office Salaries Expense 150,000 Accounts Payable 27,800 Rent Expense 30,000 Salaries Payable 3,000 Insurance Expense 3,000 Unearned Rent 8,300 Office Supplies Expense 2,000 Notes Payable 50,000 Depreciation Expense- Capital Stock 80,000 Office Equipment 1,500 Retained Earnings 275,300 Miscellaneous Administrative Expense 3,500 Dividends 35,000 Rent Revenue 7,000 Sales 1,660,000 Interest Expense 2,000 Instructions 1. Does Sagebrush Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Sagebrush Company for the year ended July 31, 2012. The merchandise inventory as of July 31, 2012, was $80,000. 3. Prepare the closing entries for Sagebrush Company as of July 31, 2012. 4. What would be the net income if the perpetual inventory system had been used