At the beginning of the year, Seller Company had 700 units with a cost of $3 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:
Jan. 3 Sold 550 units on account for $6 each.
9 Purchased 1,000 units on account for $4 per unit.
15 Sold 850 units for cash for $7 each.
Prepare journal entries to record the January transactions assuming that Seller Company uses a periodic inventory system under
(a) FIFO and
(b) average.