1. First Avenue Furniture began July with merchandise inventory of 35 teakwood armchairs that cost a total of $17,500. During the month, First Avenue purchased and sold merchandise on account as follows:

July 7	Purchase	25 items @ $580 each
14	Sale	30 items @ $725 each
18	Purchase	15 items @ $665 each
27	Sale	35 items @ $800 each

Assuming a perpetual inventory system and the FIFO cost-flow assumption, pass the necessary journal entries to record the sale transactions occurring on July 14 & July 27. (4 points)