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Company XYZ is a wholesale company selling special parts for the automotive industry. The company...

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Accounting

Company XYZ is a wholesale company selling special parts for the automotive industry. The company uses FIFO and a perpetual inventory system. Its inventory records for part SA-123 show the following transactions for the month of May 2023:

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Required: Assuming Company XYZ makes all sales and purchases of inventory on account, prepare the journal entries for each of the above listed transactions.

\begin{tabular}{|l|l|r|r|r|r|} \hline Date & Transaction & \begin{tabular}{r} Units \\ Purchased \end{tabular} & \begin{tabular}{r} Unit \\ Cost \end{tabular} & \begin{tabular}{r} Units \\ Sold \end{tabular} & \begin{tabular}{r} Unit \\ Selling \\ Price \end{tabular} \\ \hline May 1 & Balance & 120 & $7.00 & & \\ May 10 & Purchase & 500 & $7.20 & & \\ May 15 & Sale & & & (100) & $12.40 \\ May 21 & Sale & 250 & $7.30 & & $12.50 \\ May 23 & Purchase & 150) & \\ \hline \end{tabular}

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