Problem 1. Prepare the proper journal entries in good form for the following, assume perpetual system (6 points per journal entry, total of 48 points): 12/1/16 Sale on account to Joe $500,000, terms 4/15 n/30, cost of goods sold at $175,000. 12/2/16 Purchased merchandise on account from Smith Company for $300,000, terms 3/10 n/30. 12/6/16 $4,000 of the merchandise purchased from Smith Co. was broken, the merchandise was not returned to Smith Co. 12/8/16 Paid Smith Company the amount due. 12/29/16 Received the amount due from Joe, Joe paid late & did not earn the 4% discount Adjusting journal entries are done only at year-end: 12/31/16A. The Supplies account had an opening debit balance of $1,500, in addition we had supplies purchases of $1,200 and supplies returns of $100; when we took an inventory of supplies on 12/31/16 we counted only $300 of supplies remained. 12/31/16B.The Prepaid Rent account has a debit balance of $10,000, from a review of the rental agreement it was determined that this $10,000 was for the five-mo. period Nov.1 2016 to March 31, 2017 12/31/16C. The Unearned Service Revenue account currently has a $120,000 credit balance that was for a service we are to complete over a ten-month period starting on Sept. 1, 2016