You are provided with the following information for Senta Inc. for October 2020. Senta uses a perpetual method for inventory. At the beginning of month company has 40 units with cost $36. October, 9 Purchase 100 inventory at $37 from Old Friends Com., term n/30, and paid freight of $200. October, 11 Sold 120 inventory costing $38 for $53 each to New Friends Com., cash. October, 17 Purchase inventory from NewNormal Corp 90 at $41, cash October, 22 Sold 40 inventory to Pandem Com for $60 (cost per unit $38)., term 2/10, n/30. October, 23 Paid amount due to OldFriends Com October, 25 Purchase from Miu Corp 75 items inventory at $42, on cash. Freight cost $20 was paid by Miu Corp. October, 29 Sold 110 inventory costing $38 to CT Corp at $60, 2/10, n/30 October, 30 Receipt payment from Pandem at $2.000.

a. Jurnalize the October transaction, completing the answer with supporting calculation, and please explain your journal!

b. Calculate (i) ending inventory, (ii) cost of good sold, (iii) gross profit under FIFO method. Used the prepetual inventory stockcard and explain the result!

Answer rating: 100% (QA)

Perpetual Inventory Under this method all stock movements are accounted in the Invent... View the full answer