Journal entries for perpetual inventory system

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 2020.

Date Transaction Units Purchased Units Cost Unit Sold Unit Selling Price

May 1 Balance 120 $7.00

May 10 Purchase 500 $7.20

May 15 Sale (100) $12.40

May 21 Sale (150) $12.50

May 23 Purchase 250 $7.30

Instructions

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