Consider the December transactions for Crystal Clear Cleaning that were presented in Chapter 5. Crystal Clear uses the perpetual inventory system.
Dec. 2 Purchased 475 units of inventory for $2,850 on account from Sparkle, Co. on terms, 3/10, n/20.
5 Purchased 600 units of inventory from Borax on account with terms 2/10, n/30. The total invoice was for $4,500, which included a $150 freight charge.
7 Returned 75 units of inventory to Sparkle from the December 2 purchase.
9 Paid Borax.
11 Sold 285 units of goods to Happy Maids for $3,990 on account with terms 3/10, n/30.
12 Paid Sparkle.
15 Received 22 units with a retail price of $308 of goods back from customer Happy Maids. The goods cost Crystal Clear $132.
21 Received payment from Happy Maids, settling the amount due in full.
28 Sold 265 units of goods to Bridget, Inc. for cash of $3,975.
29 Paid cash for utilities of $415.
30 Paid cash for Sales Commission Expense of $550.
31 Recorded the following adjusting entries:
a. Physical count of inventory on December 31 showed 428 units of goods on hand.
b. Depreciation, $270
c. Accrued salaries expense of $725
d. Prepared all other adjustments necessary for December (Hint: You will need to review the adjustment information in Chapter 3 to determine the remaining adjustments). Assume the cleaning supplies left at December 31 are $30.
Requirements
1. Prepare perpetual inventory records for December for Crystal Clear Cleaning using the FIFO inventory costing method.
2. Journalize the transactions for December 11th, 28th, and 31st (adjusting entry a only) using the perpetual inventory record created in Requirement 1.