E6-15A. (Learning Objectives 1, 2: Accounting for inventory transactions under FIFO costing) Accounting records for Richard Corporation yield the following data for the year ended December 31, 20X6:

Requirements 1. Journalize Richard’s inventory transactions for the year under the perpetual system.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement.

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Inventory, December 31, 20X5. $ 9,000 Purchases of inventory (on account). 48,000 Sales of inventory-79% on account; 21% for cash (cost $41,000).. 77,000 Inventory at FIFO, December 31, 20X6. 16,000