$>$ Practice SetThis problem continues the Crystal Clear Clcaning practice set begun in Chapter $2$ andcontinued through Chapters $3$ and $4.$P$5-46$ Journalizing purchase and sale transactions, mking closing entries,preparing financial statements, and computing the gross profit percentageCrystal Clear Cleaning has decided that, in addition to providing cleaning services, itwill sell cleaning products. Crystal Clear uses the perpetual inventory system. DuringDecember $2017,$ Crystal Clear completed the following transactions:Dec. $2791112152128293031$Purchased $475$ units of inventory for $$2,850$ on account from Sparkle, Co$.$on terms, $3/10,$ n$20.$Purchased $600$ units of inventory from Borax on account with terms $2/10,$ n$/30.$The total invoice was for $$4,500,$ which induded a $$150$ freight charge.Returned $75$ units of inventory to Sparkle from the December $2$ purchase $($cost$$450)\mathrm{.}344$ chapter $5$Paid Borax.Sold $285$ units of goods to Happy Maids for $$3,990$ on account with terms $3/10,$n$30.$ Crystal Clear's cost of the goods was S$1,710.$Paid SparkleReceived $22$ units with a retail price of $$308$ of goods back from customer HappyMaids. The goods cost Crystal Clear $$132.$Received payment from Happy Maids, setting the amount due in full.Sold $265$ units of goods to Bridget, Inc. for cash of $$3,975($cost $$1,691).$Paid cash for utilities of $$415.$Paid cash for Sales Commission Expense of $$550.$Recorded the following adjusting entries:a$.$ Physical count of inventory on December $31$ showed $428$ units of goods onhand, $$3,148$b$.$ Depreciation, S$270$c$.$ Accrued salaries expense of $$725$d$.$ Prepared all other adjustments necessary for December $($Hint: You will need toreview the adjustment information in Chapter $3$ to determine the remainingadjustments$).$ Assume the cleaning supplies left at December $31$ are $$30.$Requirements$1.$ Open the following T$-$accounts in the ledger: Cash, $$138,150$; Accounts Receivable,$$2,600$; Merchandise Inventory, S$0$; Cleaning Supplies, $$30$; Prepaid Rent, $$1,500$;Prepaid Insurance, $$1,650$; Equipment, $$3,200$; Truck, $$7,000$; AccumulatedDepreciation$-$Equipment and Truck, $$270$; Accounts Payable, $$1,470$; UnearnedRevenue, S$11,500$; Salaries Payable, $$0$; Interest Payable, $$240$; Notes Payable$($Long$-$term$),$ $$96,000$; Common Stock, $$42,000$; Retained Earnings, $$2,650$;Dividends, S$0$; Income Summary, $$0$; Service Revenue, $$0$; Sales Revenue, S$0$; SalesReturns and Allowances, S$0$; Sales Discounts, S$0$; Cost of Goods Sold, $O; SalesCommission Expense, $$0$; Utilities Expense, So; Depreciation Expense, $$0$; SalariesExpense, S$0$; Insurance Expense, S$0$; Rent Expense, $$0$; Interest Expense, $$0\mathrm{.}2.$ Journalize and post the December transactions. Compute cach account balance,and denote the balance as Bal Identify cach accounts payable and accounts receiv$-$able with the vendor or customer name.Merchandising Operations $3433.$ Journalize and post the adjusting entries. Denote cach adjusting amount as Adj.Compute each account balance, and denote the balance as Bal. After posting alladjusting entries, prove the equality of debits and credits in the ledger$\mathrm{.}4.$ Prepare the December multi$-$step income statement, statement of retainedearnings, and classified balance sheet for the company. List Service Revenue undergross profit, and ignore classifying the expenses as selling and administrative$\mathrm{.}5.$ Journalize the December closing entries for the company$\mathrm{.}6.$ Compute the gross profit percentage for the company.CHAPTER s$2/4$