Larchmont Inc. inventory records for a particular development program show the following at July 31, 2020: (Click the icon to view the accounting records.) At July 31, 12 of these programs are on hand. Larchmont uses the perpetual inventory system. Required 1. Journalize for Larchmont: a. Total July purchases in one summary entry. All purchases were on credit. b. Total July sales and cost of goods sold in two summary entries. The selling price was $500 per unit, and all sales were on credit. Larchmont uses the FIFO inventory method. 2. Under FIFO, how much gross profit would Larchmont earn on these transactions? What is the FIFO cost of Larchmont's ending inventory? Requirement 1b. Journalize for Larchmont's total July sales and cost of goods sold in two summary entries. The selling price was $500 per unit and all sales were on credit. Larchmont uses the FIFO inventory method. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Let's start by recording the entry for July sales. Journal Entry Date Debit Credit Accounting records Accounts Accounts Receivable Sales Revenue July 1 Beginning inventory... 4 units @ $ 155 = $ 620 15 Purchase 11 units @ 165 = 1,815 26 Purchase 5 units @ 175 = 875 Now record the entry for the cost of inventory sold assuming FIFO. Journal Entry Date Accounts Debit Credit Cost of Goods Sold Print Done Inventory Requirement 2. Under FIFO, how much gross profit would Larchmont earn on these transactions? What is the FIFO cost of Larchmont's ending inventory? How much gross profit would Larchmont earn on these transactions? $0 What is the FIFO cost of ending inventory? $