Problem 6-6B (Algo) Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value (LO6-2, 6-3, 6-4, 6-5, 6-6)

At the beginning of November, Yoshi Incorporateds inventory consists of 66 units with a cost per unit of $94. The following transactions occur during the month of November.

November 2	Purchase 80 units of inventory on account from Toad Incorporated for $100 per unit, terms 3/10, n/30.
November 3	Pay cash for freight charges related to the November 2 purchase, $320.
November 9	Return 16 defective units from the November 2 purchase and receive credit.
November 11	Pay Toad Incorporated in full.
November 16	Sell 100 units of inventory to customers on account, $12,400. (Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $3 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 54 units of inventory from Toad Incorporated for $104 per unit, terms 2/10, n/30.
November 24	Sell 70 units of inventory to customers for cash, $7,500. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.)

Required:

1. Assuming that Yoshi Incorporated uses a FIFO perpetual inventory system to maintain its internal inventory records, record the transactions. 2. Suppose by the end of November that the remaining inventory is estimated to have a net realizable value per unit of $81, record any necessary adjustment for the lower of cost and net realizable value. 3. 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.