A company accounts for its inventory using FIFO with a perpetual system. At the beginning of March, the company has inventory of $40,000. 

Required:

 Record the following transactions for the company for the month of March: 

1. On March 7, the company purchases additional inventory for $65,000 on account, terms 3/10, n/30. 

2. On March 10, inventory that cost $5,000 arrived damaged and was returned for a full refund. 

3. On March 16, the company makes full payment for inventory purchased on March 7, excluding inventory returned and discount received.

 4. During the month of March, revenue from inventory sales total of $85,000. All sales are for cash. The cost of inventory sold is $35,000.