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d) March 15th: Bob Dog Company pays $10,000 toward the amount owed on account. e) March 17th: Bob Dog Company sells 400 units of inventory at a sales price of $50 per unit on account. COGS = 300* $25 (from BI) = $7,500 + 100 * $26 (from 3/5 Purchase) = $2,600 = $10,100 f) March 20h: Bob Dog Company receives 500 units of inventory that cost $27 per unit. The inventory is charged to an account. g) March 27th: Bob Dog Company sells 300 units of inventory at a sales price of $50 per unit on account. COGS = 50 * $26 (from 3/5 Purchase) = $1,300 + 250 * 27 (from 3/20 Purchase) = $6750 = 8050 Inventory Transaction Journal Entries (21 points total): At the beginning of March, Bob Dog Company has the following account balances: Debits Credits Cash $100,000 Accounts Receivable $20,000 Inventory (1000 units) $25,000 Accounts Payable $20,000 Wages Payable $5,000 Common Stock $50,000 Retained Earnings $30,000 Sales Revenue $40,000 Cost of Goods Sold $10,000 Wages Expense $10,000 $155,000 $155,000 Part 1: Complete the journal entries for each of the following transactions. Assume a FIFO periodic inventory method. a) March 5th: Bob Dog Company receives and pays cash for 200 units of inventory that cost $26 per unit. b) March 6th: Bob Dog Company returns 50 units of inventory and receives a corresponding return of cash in the amount of $1,300. c) March 10h: Bob Dog Company sells 700 units of inventory at a sales price of $50 per unit for cash. Recall that Bob Dog uses the FIFO perpetual method for inventory. COGS = 700 * $25 (from BI) = $17,500

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