Harriets Hats is a fictional company. The following information includes the balance sheet as of December 31, 2013, and the details of the transactions that occurred during 2014. Background: Harriets Hats is a hat retailer (in other words, Harriets buys hats from a hat manufacturer and then sells them in their stores). Transactions for 2014 are representative of such a companys business activities. HINT: Read through the entire assignment at least twice before beginning to do any work. This will help you familiarize yourself with all of the important facts.

Transactions for 2014: 1. Sales and Accounts Receivable

a. Harriets hats during 2014 had a sales price of $58 per hat. All sales were made on account. ( additional Information for this portion below)

Inventory

Harriets began 2014 with 2,000 hats which had a cost of $35 each. Employees physically counted 500 hats remaining in the warehouse at the end of 2014. Harriets uses a periodic LIFO inventory system to cost their inventory. The following purchases (all on account) were made during 2014:

i. January 15th 750 hats @ $36.00 each

ii. March 22nd 1,000 hats @ $38.00 each

iii. August 5th 1,250 hats @ $39.00 each

iv. October 26th 1,500 hats @ $40.00 each

b. Cash collections on account amounted to $250,000.

c. On July 1, 2014, Harriets identified $9,350 of receivables as being uncollectible and wrote them off.

d. Harriets follows a percentage-of-receivables approach to estimate their accounts receivable that will become uncollectible. As of the end of 2013, Harriets estimates that 10% of their receivables will be uncollectible.

What is the FIFO Calulation and the Journal Entries for these Transactions?