Home Hardware reported beginning inventory of 20 shovels, for atotal cost of $100. The company had the following transactionsduring the month: Jan. 2 Sold 4 shovels on account at a sellingprice of $10 per unit. Jan 16 Sold 10 shovels on account at aselling price of $10 per unit. Jan 18 Bought 5 shovels on accountat a cost of $5 per unit. Jan 19 Sold 10 shovels on account at aselling price of $10 per unit. Jan 24 Bought 10 shovels on accountat a cost of $5 per unit. Jan 31 Counted inventory and determinedthat 10 units were on hand.
Record a journal entry that shows all goods initially on hand atthe beginning of the period (in the Inventory account) and allgoods bought during the period (in the purchases account) as havingbeen sold by the end of the period.
