MERCHANDISING JOURNAL ENTRIES USING FIFO DEBIT CREDIT JNE DATE 1 Date 1 GENERAL JOURNAL 1/1/17 Choose: Choose: Transactions for May 2017-Craig Products 1/1/17 lane Craig invested $60,000 in her business, Craig Products. 2 3 2 1/10/17 Craig paid rent expense in cash in the amount of $1,000 1/10/17 Choose Choose: 4 5 6 7 8 9 3 1/15/17 Choose: Choose! 1/15/17 Craig purchased 300 units of inventory on account at a price of $6 per unit. Note: Craig uses the FIFO inventory flow assumption 10 11 12 13 4 1/20/17 Craig sold 220 units at $15 per unit, on account. 1/20/17 Choose: Choose: 5 1/20/17 Choose Choose: 1/20/17 Also record the cost of goods sold for the sale above. 6 1/22/17 Advertising was purchased in cash, for $900, 1/22/17 Choose: Choose: 15 16 17 18 19 20 21 22 23 24 7 1/24/17 Choose Choose: 1/24/17 Craig purchased 110 units of Inventory at a price of $8 per unit, paying cash 8 1/24/17 Choose Choose: 1/24/17 Craig made a sale of 95 units on account, at a price of $15 per unit 9 1/24/17 Choose: Choose 1/24/17 Craig also records the cost of goods sold on the above sale. 27 28 29 30 31 32 10 1/25/17 Collected cash from customers on account, $450. 1/25/17 Choose: Choose: DEBIT A A CREDIT A CRAIG PRODUCTS INCOME STATEMENT FOR MONTH ENDED MAY 31, 2017 A TRIAL BALANCE CASH ACCOUNTS RECEIVABLE MERCHANDISE INVENTORY ACCOUNTS PAYABLE CRAIG CAPITAL CRAIG DRAWING SALES COST OF GOODS SOLD RENT EXPENSE ADVERTISING EXPENSE A A A A A A A A A A A A A 11 SALES 12 COST OF GOODS SOLD 13 GROSS PROFIT 14 RENT EXPENSE 15 ADVERTISING EXPENSE 16 NET INCOME (LOSS) 4 A Be sure to in the income statement End of Quit