Exercise 8-9 Nash Company sells one product. Presented below is information for

Question

Exercise 8-9 Nash Company sells one product. Presented below is information for January for Nash Company. Jan. 1 Inventory 4 Sale 11 13 Sale 20 27 Sale 117 units at $5 each 94 units at $8 each 153 units at $7 each 123 units at $9 each 154 units at $7 each Purchase Purchase 90 units at $11 each Nash uses the FIFO cost flow assumption. All purchases and sales are on account. Assume Nash uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 117 units. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Journal entries by periodic system

Gross profit

Journal entries by perpetual system

Date Account titles and Description PR Dr. Cr. Jan-04 Account Receivable 752 Sales (94*8) 752 (For goods sold) Jan-11 Purchase 1071 Accounts payable 1071 (For goods purchased) Jan-13 Account Receivable 1107 Sales (123*9) 1107 (For goods sold) Jan-20 Purchase 1078 Accounts payable 1078 (For goods purchased) Jan-27 Account Receivable 990 Sales (90*11) 990 (For goods sold) Jan-31 Inventory (117*7) 819 Cost of goods sold (117*5+ 153*7+ 37*7) 1,915 Purchase (153*7+154*7) 2149 Inventory 585 (for cost of goods sold and ending Inventory recorded)

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