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comprehensive problem, please help with journal entries for the 6 transactions, t accounts provided Bower Consulting Company started the period with cash of $25,000, 500

comprehensive problem, please help with journal entries for the 6 transactions, t accounts provided

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

Bower Consulting Company

General Journal, 2013

Event

Account Titles

Debit

Credit

1

2

3

4

5

6

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