Bower Consulting Company started the period with cash of $25,000, 500 units of inventory with a cost of $20,000 (uses FIFO) , common stock of $20,000 and retained earnings of $25,000. Bower engaged in the following transactions in 2013: Transactions during 2013 1 Purchased with cash 50 units of inventory for $2,500 2 Purchased on account 250 units of inventory for $14,000 3 Sold 750 units of inventory for $112,500. This was a cash sale 4 Sold 10 units of inventory for $1,500. This was a cash sale 5 Made a partial refund for 8 units to the customer who purchased the 10 units in the transaction above. Information for Adjusting Entries 6 Bower carries only one type of inventory item. At year end the market value of each unit of inventory was $45 per unit. Re-evaluate the value of the ending inventory and prepare the necessary journal entry, assuming Bower applies the lower of cost or market rule to individual items Required Points 1 Classify each transaction as AS, AU, AE or CE 6 2 Journal Entries 12 3 T-accounts 6 4 Trial Balance 2 5 Income Statement 5 6 Statement of changes in equity 5 7 Balance sheet 5 8 Statement of cash flow 5 9 Closing entries 4 50