Lowder Company purchased 275 units of inventory on account for $5,775. Due to early payment, Lowder received a discount and paid only $5,225. Lowder then sold 150 units for cash at $55 each, purchased an additional 65 units for cash at a cost of $1,430, and then sold 100 more units for cash at $55 each. Lowder uses a perpetual inventory system.
Required
a. Prepare all journal entries to record Lowder's purchases and sales assuming the FIFO inventory costing method.
b. Which journal entries would be different if Lowder used the LIFO inventory costing method? How would they be different?