Nash Company sells one product. Presented below is information for January for Nash Company. Jan. 1 Inventory...

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Accounting

Nash Company sells one product. Presented below is informationfor January for Nash Company.
Jan. 1 Inventory 122 units at $4 each
4 Sale 101 units at $8 each
11 Purchase 164 units at $6 each
13 Sale 132 units at $9 each
20 Purchase 169 units at $6 each
27 Sale 106 units at $10 each
Nash uses the FIFO cost flow assumption. All purchases and salesare on account.
1. Assume Nash uses a periodic system. Prepare all necessaryjournal entries, including the end-of-month closing entry to recordcost of goods sold. A physical count indicates that the endinginventory for January is 116 units.
- Compute gross profit using the periodicsystem. Gross profit=?
2. Assume Nash uses a perpetual system. Prepare all necessaryjournal entries.
- Compute gross profit using the periodicsystem. Gross profit=?
Could explain more about how to calculate on part 2 about how torecord sale and how to record the cost of inventory?

Answer & Explanation Solved by verified expert

4.4 Ratings (638 Votes)

Ques 1 a Jan 4 Accounts Receivable 808 Sales Revenue 101 X 8 808 Jan 11 Purchases 164 X 6 984 Accounts Payable 984 Jan 13 Accounts Receivable 1188 Sales Revenue 132 X 9 1188 Jan 20 Purchases 169 See Answer

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