Pearl Company sells one product. Presented below is informationfor January for Pearl Company. Jan. 1 Inventory 105 units at $4each 4 Sale 83 units at $8 each 11 Purchase 162 units at $7 each 13Sale 132 units at $9 each 20 Purchase 160 units at $7 each 27 Sale97 units at $10 each Pearl uses the FIFO cost flow assumption. Allpurchases and sales are on account.
a. Assume Pearl uses a perpetual system. Prepare all necessaryjournal entries. (If no entry is required, select "No entry" forthe account titles and enter 0 for the amounts. Credit accounttitles are automatically indented when amount is entered. Do notindent manually.)
b. Compute gross profit using the perpetual system.
Gross profit= $
