This Question: 2 pts 2 of 2 (1 complete) This Test: 4 pts pos Salem Sportwears u

Question

This Question: 2 pts 2 of 2 (1 complete) This Test: 4 pts pos Salem Sportwears uses the (perpetual) LIFO inventory method. Salem Sportwears started May with 10 helmets that cost $50 sach. On May 19, Salem Sportwears bought 14 helmets at $51 each. On May 28, Salem Sportwears sold 11 helmets. 1. The May 19 purchase of inventory was on account. 2. The May 28 sale of inventory was on account. Salem Sportwears sold each helmet for $99. Prepare the required journal entries for the purchase and sale of inventory. (Record debits first, then credits. Exclude explanations from any jounal antries May 28: Salem Sportwears sold 11 helmets. Salem Sportwears sold each helmet for $99. (Do not journalize the cost related to the sale yet. We wil do this in the next joumal entry.) Journal Entry Accounts Date Debit Credit May 28 Choose from any list or enter any number in the input fieids and then continue to the next question.

Explanation / Answer

Note:-   LIFO Inventory Method

Purchased Inventory cost of goods sold Balance

Date Unit cost Total Unit cost Total Unit cost Total

1 May - - - - - - 10 $50 $500 19 May 14 $51 $714 10 $50 $500  

    14 $51 $714 28 May - - - 11 $51 $561   10 $50 $500

3 $51 $153

   11 $51 $561 13 $653

Date Accounts Dr Cr May 19 Inventory [14*$51] 714 To Accounts payable 714 May 28 Accounts receivable (11 * $99) 1089 To Sales 1089 Cost of goods sold $561 To Inventory $561

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