Accounting records for Red Deer Tire Ltd. yield the following data for the year ended December 31, 2014 (amounts in thousands):
Inventory, December 31, 2013 ................................................................... $ 550
Purchases of inventory (on account) ........................................................... 1,200
Sales of inventory-80% on account; 20% for cash (cost $900) ................. 2,000
Inventory at FIFO cost, December 31, 2014 ............................................... 850
Requirements
1. Journalize Red Deer Tire's inventory transactions for the year under the perpetual system. Show all amounts in thousands. Use Exhibit 6-4 as a model, on page 276 .
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands).