Probin 6.8A CPI sells computer peripherals. At 31 December 2012, CPI's inventory amounted to $5,000,000. During the first week in January 2013, the company made only one pur- chase and one sale. These transactions were as follows: Purchased 20 modems and 80 printers from Sharp. The total cost of these machines was $250,000, terms 3/10, n/60. A Comprehens L01, LO2, LO3, L04 L05, LOG, L07, LOS 2 Jan. Merchandising Activities Chapter 6 6 Jan. Sold 30 different types of products on account to Pace Company. The total sales price was $100,000, terms 5/10, n/90. The total cost of these 30 units to CPI was $61.000 (net of the purchase discount). CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receiv- able, inventory, and accounts payable. a. c. Instructions Briefly describe the operating cycle of a merchandising company. Identify the assets and lia- bilities directly affected by this cycle. b. Prepare journal entries to record these transactions, assuming that CPI uses a perpetual inven- tory system. Compute the balance in the Inventory account at the close of business on 6 January d. Prepare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system. e. Compute the cost of goods sold for the first week of January assuming use of the periodic system. (Use your answer to part c as the ending inventory.) f. Which type of inventory system do you think CPI most likely would use? Explain your reasoning g. Compute the gross profit margin on the 6 January sales transaction