Problem 2 (25 points) Computers & Friends sells computer peripherals. At December 31, 2018, Computers & Friends inventory amounted to $150,000. During the first week in January 2018, the company made only one purchase and one sale. These transactions were as follows: Purchased 40 keyboards and 80 printers from HP. The total cost of these machines was $28,000. Discount terms 2/10, n/30. Jan. 2 Sold 25 different types of products on account to Georges retail store. The total sales price was $39,000. The total cost of these 30 units to Computers & Friends was $16,200. Jan. 6 Computers & Friends has a full-time accountant and a computer-based accounting system. Its records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions 1. Briefly describe the operating cycle of a merchandising company. Identify the assets and liabilities directly affected by this cycle. (5 points) 2. Prepare journal entries to record these transactions, assuming Computers & Friends uses a perpetual inventory system. (5 points) 3. Compute the balance in the Inventory control account at the close of business on January 15. (4 points) 4. Prepare journal entries to record the two transactions, assuming that Computers & Friends uses a periodic inventory system. (5 points) 5. Compute the cost of goods sold (COGS) for the two weeks of January assuming use of the periodic system. (Use your answer to part 3. as the ending inventory.) (5 points)