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Help Pool Corporation Inc. reported in its recent annual report that the industry experienced some price deflation one year followed by more normalized price inflation

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Help Pool Corporation Inc. reported in its recent annual report that the industry experienced some price deflation one year followed by more normalized price inflation of approximately 2 percent overall despite price deflation for certain chemical products. This suggests that in some years Pool's overall inventory costs rise, and in some years they fall. Furthermore, in many years, the costs of some Inventory items rise while others fall. Assume that Pool has only two product items in its inventory this year. Purchase and sale information are presented below. Pool uses a perpetual inventory system. Inventory Item A Inventory Item B Transaction Units Unit Cost Units Unit Cost Beginning inventory 40 $ 6 40 $6 Purchases, February 7 80 5 Sales, February 28 50 70 Purchases, March 16 100 100 Sales, April 28 110 90 80 8 9 3 2. Prepare the journal entries to record the transactions of February 7 and February 28, using the FIFO method. Pool sold Item A for $12 and Item B for $8. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the inventory for February 7. Note: Enter debits before credits General Journal Debit Credit Date February 07 Record entry Clear entry View general Journal transactions of February 7 and February 28, using the FIFO method. Pool sold item A for $12 and Item B for $8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 00 3 Record the inventory for February 28. Note: Enter debits before credits. General Journal Debit Credit Date February 28 Record entry Clear entry View general Journal View transaction list account field Journal entry worksheet

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