EA11. LO 10.3 Prepare journal entries to record the following transactions, assuming perpetual inventory updating and first-in, first-out (FIFO) cost allocation. Assume no beginning inventory. Jan. 2, purchased merchandise for resale Jan. 12, purchased merchandise for resale Jan. 16, sold merchandise for $40 per unit Solution Jan. 2 Merchandise Inventory Accounts Payable Jan. 12 Merchandise Inventory Accounts Payable Number of Units Cost per Unit 300 200 220 $ 21 24 Jan. 16 Accounts Receivable Sales Revenue Jan. 16 Cost of Merchandise Sold Merchandise Inventory