Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3.

Data from Exercise 6-9:

The following units of a particular item were available for sale during the calendar year:

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5.

Exhibit 5:

Exhibit 3:

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4,000 units at $40 1 Jan. Apr. 19 June 30 Sept. 2 Nov. 15 Inventory 2,500 units 4,500 units at $44 5,000 units 2,000 units at $46 Sale Purchase Sale Purchase Direct Write-Off Method When the specific customer accounts are determined to be uncollectible. Allowance Method Using an estimate based on: (1) a percent of sales or (2) an analysis of receivables. Bad debt expense is recorded Allowance account No allowance account is used. The allowance account is used. Small companies and companies with few receivables. Large companies and those with a large amount of receivables. Primary users Direct Write-Off Method When the specific customer accounts are determined to be uncollectible. Allowance Method Using an estimate based on: (1) a percent of sales or (2) an analysis of receivables. Bad debt expense is recorded Allowance account No allowance account is used. The allowance account is used. Small companies and companies with few receivables. Large companies and those with a large amount of receivables. Primary users