ACC1111-Week 11 homework Provide answers to all of the following. Part 3 # Part 1 Sales related and purchase related transactions. Prepare journal entries for the following The following were selected from among the transactions completed by the Brown Company during May of the current year: Prepare journal entries for the following transactions. 4 Sold merchandise for cash, $120,000. The cost of merchandise sold was 595,000 5 Purchased merchandise on account from Black Co., list price $70,000, trade Discount 50%, freight of $600, terms FOB shipping point, 2/10, 0/ego. 12 Sold merchandise on account to Red Co., sales price $15,000, terms 3/15,0/30. The cost of merchandise sold $6,000. Use the information below to determine the number of units in ending inventory And the ending inventory value using the perpetual inventory system for FIFO. ($) Number Per Date Transaction of units unit Apr. 3 Inventory 30 600 8 Purchase 60 700 11 Sale 50 15 Purchased 30 710 20 Purchased 715 25 Sale 80 30 Sale 30 May 8 Purchase 720 10 Sale 20 19 Sale 2B Purchase 80 40 60 15 13 Red returned $3,000 of merchandise from the May 12th transaction. 730 14 Paid Black on account, for purchase of May 5. 22 Sold merchandise on account to Yellow Co., $70,000. The cost of merchandise Sold was $35,000. Part 4 There are 12 units in ending inventory compute the value of the ending inventory Using the periodic inventory method. Compute the answer using FIFO, LIFO and the average Cost methods. (round your answer to the nearest whole number) 25 Received merchandise returned by Yellow co. from sale of May 22, 55,000. The Cost of the returned merchandise was $2,500. 28 Received cash on account from sale of May 12 to Red less the return of May13. 31 Paid VISA service fee of $3,000. Part 2 What does FOB mean? Number Transaction of units Inventory 2 Purchase 3 Purchase 3 Purchase 2 Purchase 3 Purchase 3 Purchase 3 Purchase 3 Purchase 3 Purchase 4 Purchase 4 Purchase 3 Date Apr. 3 8 11 30 May 8 10 19 2B June 5 16 21 28 Price Per unit 10 15 20 25 25 30 30 35 40 40 45 50 Cost Per Purchase 20 45 60 50 75 90 90 105 120 What are the two types of FOB, and who pays under each method? What account does the seller charge (debit) when she pays her own freight charges? What account does the seller charge (debit) when she pays the buyer's freight? 160 180 150 What account does the buyer charge (debit) when she pays her own freight charges