Idaho Inc. is a wholesale company selling special parts for the automotive industry. The company uses FIFO and a perpetual inventory system. Its inventory records for part SA-123 show the following transactions for the month of May 2014:

Date	Transaction	Units	Unit	Units	Unit
		Purchased	Cost	Sold	Selling
					Price
May 1	Balance	120	$7.00
May 10	Purchase	500	$7.20
May 15	Sale			(100)	$12.40
May 20	Purchase	100	$7.35
May 21	Sale			(150)	$12.50
May 23	Purchase	250	$7.40

Instructions

Assuming Idaho makes all sales and purchases of inventory on account, prepare the journal entries for each of the above listed transactions.

Now assume Idaho uses the average cost method, prepare the journal entries.