FIFO & LIFO Perpetual Inventory Journal Entries: The following information is ta

Question

FIFO & LIFO Perpetual Inventory Journal Entries: The following information is taken from the records of Chi Co Chi Co. uses a perpetual inventory system Quantity 18 Transaction Beginning inventory Purchase Sale Purchase Sale Sale Purchase Sale Date Oct 1 Unit Cost $4.20 S4.40 12 20 10 15 $4.50 17 24 S4.70 4 Prepare journal entries for each of the transactions above (Oct. 6 through Oct. 31), first assume FIFO as the inventory cost flow assumption and then repeat the entries with LIFO. After completing the journal entries, total the ending balance for cost of goods sold and inventory for each cost flow assumption. Assume a sales price of $8 for all units Accounts Receivable Problem: For each of the following amounts, record the appropriate journal entry. Assume all accounts start with a zero balance and provide T-Accounts at the end of the Second Year for Accounts Receivable, Sales Revenue, Allowance for Uncollectible Accounts, and Uncollectible Accounts Expense. First Year: Total Credit Sales: Increase to the Uncollectible Allowance: Write offs & Payments: 800,000 12,500 1. Write off: 2. Cash Receipt: 3. Write off: 4. Cash Receipt: 5. Cash from Account Previously Written off. 1,500 3,200 485,000 7,000 300,000 Closing Entries 1. 2. Sales Revenue Uncollectible Accounts Expense Second Year: Total Credit Sales Increase to the Uncollectible Allowance: 950,000 15,000

Explanation / Answer

Journal Entries-FIFO Date Account Debit Credit Oct 5 Inventory (6*4.4) 26.4 Cash 26.4 Oct 6 Cash (12*8) 96 Sales 96 Oct 6 Cost of Goods Sold (12*4.2)-FIFO 50.4 Inventory 50.4 Oct 14 Inventory (20*4.5) 90 Cash 90 Oct 17 Cash (10*8) 80 Sales 80 Oct 17 Cost of Goods Sold (6*4.2)+(4*4.4) 42.8 Inventory 42.8 Oct 21 Cash (15*8) 120 Sales 120 Oct 21 Cost of Goods Sold (2*4.4)+(13*4.5) 67.3 Inventory 67.3 Oct 24 Inventory (9*4.7) 42.3 Cash 42.3 Oct 31 Cash (4*8) 32 Sales 32 Oct 31 Cost of Goods Sold (4*4.5) 18 Inventory 18 Cost of Goods Sold 178.5 Ending Inventory Beginning: 18*4.2 75.6 add:Purchase 158.7 less: COGS -178.5 Ending Inventory 55.8 Journal Entries-LIFO Date Account Debit Credit Oct 5 Inventory (6*4.4) 26.4 Cash 26.4 Oct 6 Cash (12*8) 96 Sales 96 Oct 6 Cost of Goods Sold (12*4.2)-LIFO 51.6 Inventory 51.6 Oct 14 Inventory (20*4.5) 90 Cash 90 Oct 17 Cash (10*8) 80 Sales 80 Oct 17 Cost of Goods Sold (10*4.5) 45 Inventory 45 Oct 21 Cash (15*8) 120 Sales 120 Oct 21 Cost of Goods Sold (10*4.5) 87 Inventory 87 Oct 24 Inventory (9*4.7) 42.3 Cash 42.3 Oct 31 Cash (4*8) 32 Sales 32 Oct 31 Cost of Goods Sold (4*4.7) 18.8 Inventory 18.8 Cost of Goods Sold 202.4 Ending Inventory Beginning: 18*4.2 75.6 add:Purchase 158.7 less: COGS -202.4 Ending Inventory 31.9

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.