At the beginning of the year, Seller Ltd. had 900 units with a cost of $5 per

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At the beginning of the year, Seller Ltd. had 900 units with a cost of $5 per unit in its beginning inventory. The following inventory transactions occurred during the month of January:

Jan. 3 Sold 700 units on account for $12 each.

9 Purchased 1,000 units on account for $6 per unit.

15 Sold 800 units for cash at $11 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: 978-1119368458

7th Canadian edition

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

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Question Posted: Jun 15, 2017 09:10 AM

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At the beginning of the year, Seller Ltd. had 900 units with a cost of $5 per

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a FIFO Perpetual Jan 3 Accounts Receivable 8400 Sales 700 12 8400 3 Cost of Goods Sold ...View the full answer

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