Amherst Networking Systems adjusts and closes its books and then prepares financial statements monthly. Amherst uses the perpetual inventory system and all sales on credit have terms of n/30. The company completed the following transactions during August. What is the process followed by Amherst Networking Systems to prepare its financial statements monthly?
1) Completing the Accounting Cycle for a Merchandising Entity
2) Using Special Journals
3) Adjusting and Closing Books
4) Preparing Financial Statements