PEI Distributors purchases inventory in crates of merchandise. Assume the company began July with an inventory of 30 units that cost $300 each. During the month, the company engaged in the following business transactions:

Assume PEI Distributors uses the FIFO cost method for valuing inventories. The company uses a perpetual inventory system.

Required

1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise.

2. Make journal entries to record the company’s transactions. No explanations are necessary.

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Jul. 10 15 22 29 31 31 Purchased 30 units on account at $320. Sold 40 units on account at $700. Purchased 70 units on account at $350. Sold 75 units on account at $800. Reported monthly operating expenses of $30,000. The company paid one-third with cash and the rest was recorded on account. Paid $12,000 of the Accounts Payable balance