16E_2
Question
Question: Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of each putter is \(119. Company records indicate the following for a particular line ofGolf Unlimited’s putters:
Date Item Quantity Unit Cost
Nov. 1 Balance 24 \) 53
6 Sale 20
8 Purchase 30 70
17 Sale 30
30 Sale 2
Requirements
2. Journalize Golf Unlimited’s inventory transactions using the FIFO inventory costingmethod. (Assume purchases and sales are made on account.)
Step-by-Step Solution
VerifiedThe total of journal book matches at $11,520.
| Journal entry |
|
|
Date | Description | Debit | Credit |
|
|
|
|
Nov 6 | Accounts Receivables | $2,380 |
|
| Sales Revenue |
| $2,380 |
| Being sales made on account |
|
|
|
|
|
|
| Cost of goods sold | $1,060 |
|
| Inventory |
| $1,060 |
| Being cost of goods sold recorded |
|
|
|
|
|
|
8 | Inventory | $2,100 |
|
| Accounts Payable |
| $2,100 |
| Being Inventory purchased on account |
|
|
|
|
|
|
| Balance c/d | $5,540 | $5,540 |
| Journal entry |
|
|
Date | Description | Debit | Credit |
|
|
|
|
| Balance c/d | $5,540 | $5,540 |
|
|
|
|
Nov 17 | Accounts Receivables | $3,570 |
|
| Sales Revenue |
| $3,570 |
| Being sales made on account |
|
|
|
|
|
|
| Cost of goods sold | $2,032 |
|
| Inventory |
| $2,032 |
| Being cost of goods sold recorded |
|
|
|
|
|
|
30 | Accounts Receivables | $238 |
|
| Sales Revenue |
| $238 |
| Being sales made on account |
|
|
|
|
|
|
| Cost of goods sold | $140 |
|
| Inventory |
| $140 |
| Being cost of goods sold recorded |
|
|
|
|
|
|
| Balance c/d | $11,520 | $11,520 |