Book Journal Entries for the following transactions. Inventory includes the following: Beginning balance of $0. On January...

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Accounting

Book Journal Entries for the following transactions.
Inventory includes the following: Beginning balance of $0. OnJanuary 3, 2016 we purchased $22,000 (1000 units at $22) worth ofinventory. 1,000 units of inventory was purchased on June 1 for$23/unit; and finally a 1,000 units on December 1 for $24/unit.2,000 units were sold for $300/unit on December 20^th($120,000 in cash was received and the remaining will be collectedin 2017). The rate used for determining uncollectible has been setat 10% of gross credit sales. The company uses perpetualFIFO.

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Solution Journal entries Date Account Titles and Explanation Ref Post Debit Credit Jan 3 2016 Merchandise Inventory 22000 Cash 22000 to record purchase of 1000 units at 22 each June See Answer

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Book Journal Entries for the following transactions.Inventory includes the following: Beginning balance of $0. OnJanuary 3, 2016 we purchased $22,000 (1000 units at $22) worth ofinventory. 1,000 units of inventory was purchased on June 1 for$23/unit; and finally a 1,000 units on December 1 for $24/unit.2,000 units were sold for $300/unit on December 20th($120,000 in cash was received and the remaining will be collectedin 2017). The rate used for determining uncollectible has been setat 10% of gross credit sales. The company uses perpetualFIFO.