$4.$ Pip$$s Pillow Company uses the Perpetual Inventory Method and has an Inventory

Balance of $$30,000$ on JAug$1$st $2024.$ Pip makes all of his sales on account receivable and

allows his customers the following sales discount terms: $2/10,$ Net $30.$

During the month of July...Pip had the following inventory and sales transactions:

a$.$ Pip purchases $$18,900$ worth on Inventory on account payable, Terms: $2/10,$ Net $30,$

FOB Destination

b$.$ The appropriate company pays cash of $$300$ to UPS for the shipment on the inventory

purchased in $($a$).$

c$.$ Pip Sells Inventory on Account Receivable to The My Pillow Company for $$40,000$ the

Inventory Cost Pip $$25,500.$ FOB Destination

d$.$ Pip returns $40\%$ of the Inventory he purchased in $($a$).$

e$.$ The appropriate party pays $$150$ in cash to UPS for the shipment from transaction $.$

f$.$ My Pillow returns $$18,000$ of the sales they purchased in transaction $.$ The inventory

returned to Pip cost $$8,500.$

g$.$ Pip pays for the inventory he purchased in $($a$)$ within the $10$ day time period.

h$.$ Pip purchases $$30,500$ of Inventory on account payable from Callie$$s Cotton Company,

terms $2/10,$Net$/30,$ FOB Shipping point.

i$.$ The proper party pays $$50$ to UPS for the shipping costs from transaction $($h$)$

j$.$ Pip collects the payment from My Pillow within the $10$ day sales discount time period.

k$.$ Pip sells $$16,500$ worth of Inventory cost to Jackson$$s Jumpers for $$34,000$ on account

receivable terms FOB Shipping point.

Required:

a$.$ Record the transactions in Pip$$s Journal for the Month of Aug

b$.$ What is the ending value of Inventory?

c$.$ What is the ending value for Cost of Goods Sold?