lated and purchase related transactions. The following were selected from among the transactions completed by the Brown Company duringMay of the current year: Prepare journal entries for the following transactions.

4. sold merchandise on VISA, $120,000. The cost of merchandise sold was $75,000.

5Purchased merchandise on account from Black Co., list price $70,000, tradediscount 40%, freight of $400, terms FOB shipping point, 2/10, n/eom.

12 sold merchandise on account to Red Co., list price $15,000, terms 3/15, n/30.The cost of merchandise sold $6,000.

13. red returned $3,000 of merchandise from the May 12th transaction.

14. paid Black on account, for purchase of May 5.

22. sold merchandise on account to Yellow Co., $60,000. The cost of merchandisesold was $35,000.

25. received merchandise returned by Yellow co. from sale of May 22, $6,000. The cost of the returned merchandise was $2,500.28Received cash on account from sale of May 12 to Red less the return of May13.31Paid VISA service fee of $3,000.Part 2What does FOB mean?What are the two types of FOB, and who pays under each method?What account does the seller charge (debit) when she pays her own freight charges?What account does the buyer charge (debit) when she pays her own freight charges?What account does the seller charge (debit) when she pays the buyer's freight?

Part 3 Use the information below to determine the number of units in ending inventoryand the ending inventory value using the perpetual inventory system for FIFO.($) Number PerDateTransactionof unitsunitApr. 3Inventory30800 8Purchase 60820 11Sale40- 30Sale30- May 8Purchase 60850 10Sale20- 19Sale15- 28Purchase 80900 Part 4There are 10 units in ending inventory compute the value of the ending inventoryusing the periodic inventory method. Compute the answer using FIFO, LIFO and the averagecost methods. (round your answer to the nearest whole number)Price CostNumber PerPerDateTransactionof unitsunitPurchaseApr. 3Inventory210 208Purchase 2153011Purchase 3206030Purchase 22550 May 8Purchase 3257510Purchase 3309019Purchase 3309028Purchase 335105 June 5Purchase 34012016Purchase 44016021Purchase44518028Purchase 350150