Kamlhani Imports is a furniture distributor that uses the FIFO cost method with itsperpetual inventory system. The following information is for the first item that it is selling— bean bag chairs—for the month of November. The store engaged in the following business transactions:

Required

1. Prepare a perpetual inventory record, at FIFO cost, for the bean bag chair inventory.

2. Make journal entries to record the company’s transactions. No explanations are required.

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Nov. 1 Opening inventory 50 chairs at $50 3 Purchase on account 60 chairs at $55 10 Sale on account 100 chairs at $120 22 Purchase on account 90 chairs at $60 24 Sale on account 70 chairs at $140 28 Operating expenses were $14,400, with one-half paid in cash and the rest reported on account.