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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: 0 0 Transactions during 2013 Purchased with cash 50 units of inventory for $2,500 Purchased on account 250 units of inventory for $14,000 Sold 750 units of inventory for $112,500. This was a cash sale Sold 10 units of inventory for $1,500. This was a cash sale 0 0 = Made a partial refund for 8 units to the customer who purchased the 10 units in the transaction above. B 13 Information for Adjusting Entries 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 Points Required Classify each transaction as 1 AS, AU, AE or CE 2 Journal Entries 3 T-accounts 4 Trial Balance 5 Income Statement Statement of changes in 6 equity 7 Balance sheet 8 Statement of cash flow 9 Closing entries 8 A o o o on