Paddy Corporation uses FIFO to track inventory using the perpetual inventory system and had the following inventory information available:

			Units	Unit Cost	Total Cost
Jan	1	Beginning inventory	15	$8.00	$ 120
	20	Purchase	60	9.00	540
Feb	5	Sale	30

REQUIRED:

Prepare journal entries to record the following transactions:

1. January 20 purchase assuming it was purchased on account, terms 2/10, n30.
2. February 5 sale on account, terms 2/10, n30, assuming the sale price was $14.00 per unit.
3. Assume customer from February 5th paid their account in full on February 10 within the discount period.