Perid dic versus Perpetual Entries Jay Company sells one product. Presented below is information for January for Jay Company. Jan. 1 4 11 13 20 27 Transaction Beginning Inventory Sale Purchase Sale Purchase Sale 100 units at $5 each 80 units at $8 each 150 units at $6 each 120 units at $8.75 each 160 units at $7 each 100 units at $9 each 2) LIFO Jay Company uses the LIFO cost flow assumption. All purchases and sales are on account credit). (a) Assume Jay Company uses a PERIODIC system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 110 units. Debit Credit Date Accounts Jan. 4 Accounts Receivable Sales Revenue Jan. 11 Purchases Accounts Payable Jan. 13 Accounts Receivable Sales Revenue Jan. 20 Purchases Accounts Payable Jan. 27 Accounts Receivable Sales Revenue Jan. 31 Inventory Cost of Goods Sold Purchases Inventory (b) Compute gross profit using the periodic system. $ Sales revenue Cost of goods sold Gross profit $ (c) Assume Jay Company uses a PERPETUAL system. Prepare all necessary journal entries. Remember that LIFO under perpetual system may have different "last-in" price at different dates when the sales are made. Debit Credit Date Jan. 4 Accounts Accounts Receivable Sales Revenue Cost of Goods Sold Inventory Jan. 11 Inventory Accounts Payable Jan. 13 Accounts Receivable Sales Revenue Cost of Goods Sold Inventory Jan. 20 Inventory Accounts Payable Jan. 27 Accounts Receivable Sales Revenue Cost of Goods Sold Inventory (d) Compute gross profit using the perpetual system. A Sales revenue Cost of goods sold Gross profit