During July, Laesch Company, which uses a perpetual inventory system, sold 1,400 units from its LIFO-based inventory, which had originally cost $18 per unit. The replacement cost is expected to be $24 per unit.

Required:

Respond to the following two independent scenarios as requested.

a.Case 1: In July, the company is planning to reduce its inventory and expects to replace only 1,000 of these units by December 31, the end of its fiscal year.

(1) Prepare the entry in July to record the sale of the 1,400 units.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

(3) Prepare the entry for the replacement of the 1,000 units in September at an actual cost of $29 per unit.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.Case 2: In July, the company is planning to reduce its inventory and expects to replace only 380 of its units by December 31, the end of its fiscal year.

(1) Prepare the entry in July to record the sale of the 1,400 units.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.Case 2: In July, the company is planning to reduce its inventory and expects to replace only 380 of its units by December 31, the end of its fiscal year.

(1) Prepare the entry in July to record the sale of the 1,400 units.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)