Petersen Book Store entered into the transactions listed below. Prepare Petersen s necessary entries, assuming use of the perpetual inventory system July 6 Purchased $1,600 of merchandise on credit terms N30 8 Returned $100 of the items purchased on July 6. 9 Paid freight charges of $90 on the items purchased July 6. 19 Sold merchandise on credit for $4.400 terms 1/10, 1/30. The merchandise had an inventory cost of $2,700. 22 of the merchandise sold on July 19, $300 of it was retumed. The items had cost the store $150. 18245 Grother Company uses the periodidinventory method and had the following inventory information available: Units Unit Cost Total Cost 1/1 Beginning Inventory 100 $ 400 1/20 Purchase 500 $5 2,500 7/25 Purchase 100 700 10/20 Purchase 300 2.400 1.000 $6,000 $4 $8 A physical count of inventory on December 31 revealed that there were 350 units on hand. Instructions Answer the following independent questions. 1. Assume that the company uses the FIFO method. The value of the ending inventory at December 31 is $ 2. Assume that the company uses the average cost method. The value of the ending inventory on December 31 is $ 3. Assume that the company uses the LIFO method. The value of the ending inventory December 31 is $_ 4. Determine the difference in the amount of income that the company would have reported had used the FIFO method instead of the LIFO method. Would income have been greate less? Difference: More or less