5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms:

FOB shipping point, 2/10, n/30. The seller prepays the $50 shipping charges and bills the customer, (seller

pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for

merchandise costing $500 that is returned. The correct amount is received within the discount period.

Record the foregoing transactions of the seller in the sequence indicated below.

(a)	Sold the merchandise, recognizing the sale and cost of merchandise sold.
(b)	Paid the transportation charges.
(c)	Issued the credit memorandum.
(d)	Received payment from the customer.

Date	Description	Post Ref	Debit	Credit

6. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:

June 1 Balance 25 units at $60

6 Sale 20 units

8 Purchase 20 units at $61

16 Sale 10 units

20 Purchase 20 units at $62

23 Sale 25 units

30 Purchase 15 units at $63

Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the last-in, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory.