Problem $6-6$B $($Algo$)$ Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value $($LO$6-2,6-3,6-4,6-5,6-6)$

At the beginning of November, Yoshi Incorporated's inventory consists of $59$ units with a cost per unit of $$95.$ The following transactions occur during the month of November.

November $2$ Purchase $100$ units of inventory on account from Toad Incorporated for $$100$ per unit, terms $\frac{2}{10},\frac{n}{30}.$

November $3$ Pay cash for freight charges related to the November $2$ purchase, $$300.$

November $9$ Return $25$ defective units from the November $2$ purchase and receive credit.

November $11$ Pay Toad Incorporated in full.

November $16$ Sell $100$ units of inyentory to customers on account, $$13,900.($Hint: The cost of units sold from the November $2$ purchase includes $$100$ unit cost plus $$4$ per unit for freight less $$2$ per unit for the purchase discount, or $$102$ per unit.$)$

November $20$ Receive full payment from customers related to the sale on November $16.$

November $21$ Purchase $69$ units of inventory from Toad Incorporated for $$105$ per unit, terms $\frac{1}{10},\frac{n}{30}.$

November $24$ Sell $90$ units of inventory to customers for cash, $$9,000.($Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November $20.)$

Required:

Assuming that Yoshi Incorporated uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions.

Suppose by the end of November that the remaining inventory is estimated to have a net realizable value per unit of $$80,$ record any necessary adjustment for the lower of cost and net realizable value.

Prepare the top section of the multiple$-$step income statement through gross profit for the month of November after the adjusting entry for lower of cost and net realizable value.

Complete this question by entering your answers in the tabs below.

Assuming that Yoshi Incorporated uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry R$$uired$"$ in the first account field.$)$

Journal entry worksheet

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Record purchase of $100$ units of inventory on account from Toad Incorporated for $$100$ per unit, terms $\frac{2}{10},\frac{n}{30}.$