Kala kaua Merchandising had the following transactions during May: May 1 Beginning inventory was 40 units valued
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Question:
Kala kaua Merchandising had the following transactions during May:
May 1 Beginning inventory was 40 units valued at $50 per unit.
May 5 Purchased 160 units of merchandise on account for a total cost of $8,640, terms n/15,
FOB shipping point.
May 9 Paid transportation cost on the May 5 purchase, $480.
May 10 Returned four units of defedive merchandise purchased on May 5.
May 11 Sold 50 units for $120 per unit on account.
May 15 Paid for the May 5 purchase, less the retum.
May 20 Sold 20 units for $120 per unit on account.
Required:
Assuming FIFO and that the perpetual inventory system is used, prepare the journal entries to record
the above transactions. Omit explanations.
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