On January 15, 2002. Bass Track sold 1,000 Ace-5 fishing reels to Angler's Warehouse. Immedi- ately prior to this sale, BassTrack's perpetual inventory records for Ace-5 reels included the following cost layers Purchase Date Dec. 12, 2001 Jan. 9, 2002... Total on hand .. Quantity Unit Cost Total Cost $17,400 28,800 546,200 600 32 1.500 Note: We present this problem in the normal sequence of the accounting cycle that is, journal entries before ledger entries. However, you may find it helpful to work part b first. a. Prepare a separate journal entry to record the cost of goods sold relating to the January 15 sale of 1,000 Ace-5 reels, assuming that Bass Track uses: 1. Specific identification (500 of the units sold were purchased on December 12, and the remaining 500 were purchased on January 9) 2. Average cost 3. FIFO 4. LIFO b. Complete a subsidiary ledger record for Ace-3 reels using each of the four inventory valua- tion methods listed above. Your inventory records should show both purchases of this prod uct, the sale on January 15, and the balance on hand at December 12, Januury 9, and January 15. Use the formats for inventory sabsidiary records illustrated on pages 323-325 of this chapter. Refer to the cost of goods sold figures computed in part a. For financial reporting purposes. can the company use the valuation method that resulted in the lowest cost of goods sold if, fr tax parposes, it used the method that resulted in the highest cost of goods sold? Explain. c. Problems 8.2 and 8.3 are based on the following data Speed World Cycles sells high-performance motorcycles and Motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the cument year, Speed World purchased eight of these cycles at the following costs: Unit Total Purchased Cost Cost Units Purchase Date uly 1 July 22 $4,950 $ 9,900 5,000 15,000 5,100 15,300 $40,200 Aug 3