There are three different questions: Famous Sport ears uses the perpetua LIFO nv

Question

There are three different questions:

Famous Sport ears uses the perpetua LIFO nventory method. Famous Sport ears started August with 3 nelmets at o ss ea On August 12, Famous Spo ea bought hel mets at $51 each. On August 28, Famous Sportwears sold 6 helmets. 1. The August 19 purchase of inventory was on account 2. The August 28 sale of inventory was on account. Famous Sportwears sold each helmet for $96 Prepare the required journal entries for the purchase and sale of inventory. (Record debits first, then credits. Exclude explanations from any journal entries.) 1. Prepare the journal entry for the purchase of inventory on account. August 19: Famous Sportwears bought 7 helmets at $51 each. Journal Entry Accounts Date Debit Credit Aug 19

Explanation / Answer

solution 1:

(2)

Cost of goods sold / Average inventory = inventory t/o

$715,000 / $67,000 = 10.7

Date Account title Debit Credit Aug 19 Purchases A/c Dr. $357 To Accounts payable $357 Aug 28 Accounts receivables Dr $576 To sales A/c $576

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