I am stuggling with these 2 qeustions, please plase help me. Thank you. Problem

Question

I am stuggling with these 2 qeustions, please plase help me. Thank you.

Problem 1: Four Company reported inventory on December 31, 2015 of 3,000 units of cost of $150,000. The following transactions occurred during January 2016: Four Company used a periodic, FIFO inventory system and the gross method to account for purchase discounts and sales discounts Required: Prepare the journal entry for each date. If no entry is required, state "No Entry. Jan 3: Purchased 200 units on account for $10,000. Terms of the purchase were 2/10, n30 F.O.B shipping point Jan 7: Received the inventory purchased on January 3. Jan 8: Sold 800 units on account for $60,000. Terms of the sale were F.O.B. destination: there were no sales discounts. Jan 11: Paid for the inventory purchased on January 3 Jan 14: The goods sold on January 8 arrived at the customer's warehouse Jan 15: Purchased 400 units on account for $20,000. Terms of the sale were 2/10. n30: F.O.B. destination Jan 18: Received the inventory purchased on January 15. Jan 30. Paid for the inventory purchased on January 15

Explanation / Answer

Problem 1 General Journal Date Account Title Debit Credit Jan.3 Inventory 10000 Accounts Payable 100000 (purchase of 200 units on account) Jan.7 No entry required Jan.8 Accounts Receivable 60000 Sales 60000 (Sale of 800 units ) jan.11 Accounts Payable 10000 Cash 9800 Inventory 200 (Payment made for purchase of Jan.3) Jan.14 No entry required. Jan.18 Inventory 20000 Accounts Payable 20000 (Purchase of 400 units on account) Jan.30 Accounts Payable 20000 Cash 20000 (Payment made for purchase of Jan.15) Problem 2 Date Account Title Debit Credit Dec.31,2013 Cost of goods sold 1000000 Purchase Discounts 20000 Purchase returns 15000 Purchases 950000 Freight in 40000 Inventory 45000 (Entry to close purchase and inventory accounts)

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