Question: Mike s Powersports uses the perpetual average cost inventory method Mike s

Mike’s Powersports uses the (perpetual) average cost inventory method. Mike’s Powersports started August with 10 helmets that cost $54 each. On August 19, Mike’s Powersports bought 15 helmets at $56 each. On August 28, Mike's Powersports sold 12 helmets.
1. The August 19 purchase of inventory was on account.
2. The August 28 sale of inventory was on account. Mike’s Powersports sold each helmet for $95.
Prepare the required journal entries for the purchase and sale of inventory.

View Solution:

Sale on SolutionInn
  • CreatedJuly 08, 2015
  • Files Included
Post your question