At the beginning of the year, Seller Ltd. had 700 units with a cost of $4 per

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At the beginning of the year, Seller Ltd. had 700 units with a cost of $4 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

Jan. 3 Sold 500 units on account for $6 each.

9 Purchased 1,000 units on account for $4 per unit.

15 Sold 800 units for cash at $8 each.

Prepare journal entries assuming that Seller Ltd. uses FIFO

(a) Under a perpetual inventory system and

(b) Under a periodic inventory system.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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Question Posted: Jan 11, 2017 10:04 AM

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At the beginning of the year, Seller Ltd. had 700 units with a cost of $4 per

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a FIFO Perpetual Jan 3 Accounts Receivable 3000 Sales 500 6 3000 3 Cost of Goods Sold 50...View the full answer

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