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Petes Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Petes Tennis Shop uses a periodic

Petes Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Petes Tennis Shop uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
August 1 Beginning inventory 8 $ 141 $ 1,128
August 4 Sale ($130 each) 5
August 11 Purchase 10 131 1,310
August 13 Sale ($145 each) 8
August 20 Purchase 10 121 1,210
August 26 Sale ($155 each) 11
August 29 Purchase 11 111 1,221
$ 4,869

For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.

Problem 6-2B Part 7

7. If Petes chooses to report inventory using LIFO, record the LIFO adjustment.

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