Kamlhani Imports is a furniture distributor. The following information is for one item of inventory, kitchen chairs, for the month of November. The store purchased and sold merchandise on account as follows:
Nov. 1 Opening inventory ............ 50 chairs at $ 50
3 Purchase ............................... 60 chairs at $ 55
10 Sale ............................... 100 chairs at $120
22 Purchase ......................... 90 chairs at $ 60
24 Sale ............................... 70 chairs at $140
Assume that Kamlhani Imports uses the FIFO cost method. All sales were made on account. Operating expenses were $14,400, with two-thirds paid in cash and the rest accrued in Accounts Payable.
Required
1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.
2. Make journal entries to record the company's transactions.