Journal Entries for Merchandise Transactions on Seller's and Buyer's Records-Periodic System
The following are selected transactions for Fenton, Inc., during the month of January:
\table[[Jan. 18,Sold and shipped on account to Lawrence Stores merchandise for
$1,500
with terms of
(2)/(10),(n)/(30)
.],[Jan. 25,Lawrence Stores was granted a
$200
allowance on goods shipped January 18 .],[Jan. 27,Received from Lawrence Stores a check for full settlement of the January 18 transaction.]]
Required
Prepare journal entries for (a) Fenton, Inc., and (b) Lawrence Stores. Both companies use the periodic inventory system.
Sellers journal entries
Buyer's journal entries
Inventory Costing Methods-Perpetual Method
The Lippert Company uses the perpetual inventory system. The following July data are for an item in Lippert's inventory:
\table[[July,1,Beginning inventory,30,units @,
$8
,per unit],[,10,Purchased,50,units @,
$9
,per unit],[,15,Sold,60,units @,,],[,26,Purchased,25,units @,
$10
,per unit]]
Calculate the cost of goods sold for the July 15 sale using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.
\table[[A.,First-in, First-out:,],[Cost of Goods Sold:,
§