The Wallenby Company sells a product called Walltool and uses a perpetual inventory system to account for its merchandise. The beginning balance of Walltools and transactions during January of this year were as follows:

Jan. 1 Balance: 18 units costing \(\$ 11\) each.

8 Purchased 30 units costing \(\$ 12\) each.

11 Sold 12 units.

17 Sold 16 units.

22 Purchased 24 units costing \(\$ 14\) each.

28 Sold 9 units.

31 Sold 18 units.

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1. Under the assumption the business keeps its records on a FIFO basis, enter the beginning balance and the transactions on a subsidiary inventory record like the one illustrated in this chapter.

2. Under the assumption the business keeps its inventory records on a LIFO basis, enter the beginning inventory and the transactions on a second subsidiary inventory record.

3. Assume the 18 units sold on January 31 were sold on credit to Diane Bay at \(\$ 21\) each. Prepare general journal entries to record the sale on a LIFO basis.