Complete the inventory value of the units sold as of the end of the year under each of the following methods a) Average cost, b) FIFO, C Li Problem 5 (30%) Henry Company engaged in the following transactions in October Oct. 7 Sold merchandise on credit to Larry Hill, terms 2/10,n/30, FOB shipping point, $3,000 (cost, $1,800). Purchased merchandise on credit from Eagle Company, terms n/30, FOB Shipping point, $6,400. Paid Kendall Company for shipping charges on merchandise purchased on October 8, $254 Larry Hill returned some of merchandise sold to him on October 7, for Credit, $200(cost, $120), and we returned the merchandise to inventory. Received payment from Larry Hill for purchase of October 7, less credit of October 10. 8 9 10 12 INSTRUCTIONS 1. Prepare general journal entries to record the transactions, assuming the periodic inventory system is used. Prepare general journal entries to record the transactions, assuming the perpetual inventory system is used. 2