P7-3 Comparing and Contrasting the Effects of Inventory Costing Methods on Financial Statement Elements L07-2, 7-3 Neverstop Corporation sells item A as part of its product line. Information about the beginning inventory, purchases, and sales of item A are given in the following table for the first six months of the current year. The company uses a perpetual inventory system: Purchases Sales Date Number of Units Unit Cost Number of Units January 1 (beginning inventory) Sales Price 525 $3.00 January 24 325 February 8 $4.50 625 $3.10 March 16 325 June 11 $4.50 625 $3.10 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of sales, assuming that all sales and purchase transactions are on account and that the weighted average method is used. (Do not round intermediate calculations and round the final answers to 2 decimal places. If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet Record cost of sales on goods sold on account. Note: Enter debits before credits. General Journal Debit Credit Date January 24 Record entry Clear entry View general journal Journal entry worksheet Record sales on account. Note: Enter debits before credits. General Journal Date March 16 Debit Credit Record entry Clear entry View general journal Journal entry worksheet