Acct 3003 Chapter 8 Inventory Handout

Prepare journal entries to record the following activity assuming Dino Corp uses the FIFO perpetual inventory method:

1. Beginning inventory: 100 raptors @ $5 each
2. Purchased 100 raptors for $10 each from Jurassic Inc terms n/30.
3. After receiving the raptors, 10 were found defective and returned for credit to Jurassic Inc
4. Paid for the raptors purchased from Jurassic Inc
5. Sold 6 raptors to Dr. Grant for $20 each on account, terms n/30
6. Dr. Grant returns 1 raptor, we give him credit
7. Received payment from Dr. Grant for the amount owed
8. At the end of the accounting period, a physical count revealed 180 raptors

Repeat Assuming Dino Corp uses the FIFO periodic inventory method