Answer to Question #11931 in Other Economics for jessica
Prepare the appropriate journal entries to record the following transactions assuming that the FIFO cost flow assumption is used. Prepare the Inventory Subsidiary Ledger for the same transactions, also using FIFO. EXPLANATIONS ARE TO BE OMITTED!!
April 1. Feathers Company purchased 100 units at $10.00 per unit. Terms were net 30.
April 10. Sold 75 units to Rambo Co, sales price per unit $12. Terms of the sale were 2/10, n/30.
April 18. Received payment from Rambo Co. within the discount period.
April 20. Purchased 200 units at $8.00 per unit. Terms were net 30.
April 25. Sold 150 units to Tarzan Co., sales price per unit $11. Terms of the sale were 2/10, n/45.
April 28. Purchased 80 units at $9.00 per unit. Terms were net 30.
April 30. Feathers Co. paid the account payable from April 1.