Part $1$: Prepare Phineas Inc.$\text{'}$s journal entries for each of the following transactions. Assume

that a perpetual inventory method is used.

Recording Purchases of Merchandise

Phineas Inc. purchases $$80,000$ of inventory on account, terms $\frac{2}{10}$ net

$30$ from Isabella Co$.$

Phineas Inc. returns $$15,000$ of inventory to Isabella Co$.$ from the initial

purchase.

Phineas Inc. pays the balance owed to Isabella Co$.,$ taking the discount.

Recording Sales of Merchandise $($new scenario$)$

Drake Inc. sells merchandise on account for $$25,000($terms $\frac{3}{10}$ net $30)$

to Josh Corp. The merchandise had cost Drake Inc. $$9,500.$

Josh Corp. returns $$5,000$ of the merchandise to Drake Inc. Assume this

returned merchandise had cost Drake Inc. $$1,550.$

Josh Corp. pays Drake Inc. the balance owed within $10$ days of the sale.

Part $2$: During $2024,$ Bloom Inc. sold $38,000$ units of its product. The following

units were on hand or purchased during the year:

Required: In the table above, fill in the number of units sold and the number of units in Ending

Inventory. Calculate ending inventory and cost of goods sold for the next $3$ questions.

If the company used the FIFO method, what is the value of ending

inventory and cost of goods sold?

Ending Inventory:

Cost of Goods Sold:

If the company used the LIFO method, what is the value of ending

inventory and cost of goods sold?

Ending Inventory:

Cost of Goods Sold:

If the company used the average cost method, what is the value of ending

inventory and cost of goods sold?

If necessary, please round your calculated average cost per unit to $4$ decimals

$($example $-$ $$18\mathrm{.}7910)$

Average Cost per unit $=$

Ending Inventory: