Overview
Only use the methods that are used in the documents attached below
Each answer should be in a separate excel sheet, ex; answer 1, in on page. Answer 2, in the second page, etc….
Al Zain Company completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Al Zain showed Cash of AED 31,200 and A. Zain, Capital of AED 31,200.
May 2: Purchased merchandise on account from Rami Supply Co. AED 26,500, terms 2/10, n/30.
May 4: Sold merchandise on account AED 22,800, FOB destination, terms 2/10, n/30. The cost of the merchandise sold was AED 17,700.
May 5: Paid AED 1,100 freight on May 4 sale.
May 6: Received credit from Rami Supply Co. for merchandise returned AED 1,500.
May 11: Paid Rami Supply Co. in full, less discount. May 13: Received collections in full, less discounts, from customers billed on May 4.
May 14: Purchased merchandise for cash AED 16,500.
May 16: Received refund from supplier for returned goods on cash purchase of May 14, AED 2,000.
May 18: Purchased merchandise from Layla Distributor AED 21,500, FOB shipping point, terms 3/10, n/30.
May 20: Paid freight on May 18 purchase AED 450. May 23: Sold merchandise for cash AED 28,000. The merchandise sold had a cost of AED 19,400.
May 26: Purchased merchandise for cash AED 11,200.
May 27: Paid Layla Distributor in full, less discount.
May 29: Made refunds to cash customers for defective merchandise AED 550. The returned merchandise had a scrap value of AED 150.
May 30: Sold merchandise on account AED 15,800, terms n/30. The cost of the merchandise sold was AED 12,400.
Instructions:
Journalize the transactions using a perpetual inventory system.
Prepare Trial Balance
Prepare the income statement through gross profit for the month of May 2025.
Principles-based systems rely more on professional judgment, whereas rules-based systems emphasize strict compliance. Discuss this distinction with evidence from empirical studies and academic research.
Word count: Depend on how the answer would look like, i don't want it to be general answer for the written part