Product: Plastic Pineapples Assumptions: - All sales and purchases are made with cash, unless otherwise noted - All purchases are FOB destination, unless otherwise noted - All sales are FOB shipping point, unless otherwise noted - Sunrise uses a perpetual inventory system, and the gross method - Sunrise uses the percentage of credit sales method, and historically estimates that 1% of their credit sales are uncollectible Instructions: - Using LIFO, record journal entries relevant to the transactions below - Record bad debt expense for the period - Determine ending inventory, cost of goods sold, and net income under - FIFO - LIFO - Weighted Average Cost Beginning Balances (Jariuary 1): - Inventory: $900 (60 units) - Accounts Receivable: $4,200 - Allowance for Doubtful Accounts: $120 Transactions: 1. January 6: - Sold 35 pineapples to Plankton Inc. for $30 each on credit - Credit terms were 2/10,n/60 - The sale was FOB Destination, and shipping cost $200 2. January 10: - Plankton Inc. paid for their January 6th order 3. January 12 - Purchased 100 pineapples from Squidbob Suppliers at a total cost of $1,500 on credit. - Credit terms were 5/10,n/30. 4. January 20: - Paid Squidbob suppliers for the January 12th order 5. January 23: - Sold 75 pineapples to Star Enterprises for $25 each. 6. February 7: - Sold 25 pincapples to Sandy Partners for $30 each on credit - Credit terms were 2/10,n/60 7. February 10: - 10 of the shirts from the February 7th sale were returned 8. February 17: - Received $1,550 from Plankton Inc. for previously purchased inventory. 9. February 25: - Purchased 160 pincapples from Chum Bucket Suppliers at a total cost of $2,400. - The order was FOB shipping point, and shipping costs were $160. 10. March 5: - Purchased 75 pineapples from Squidbob Suppliers for $20 each on credit - Credit terms were 10/10,n/30 11. March 9: - Paid Squidbob for the March 5th order 12. March 11: - Sold 80 pineapples to Plankton Inc for $32 each on credit. - Credit terms were 5/10,n/30. 13. March 20: - Plankton Inc, paid for their March 11th order. 14. March 25: - Purchased 125 pineapples from Chum Bucket Suppliers for $2,200 on credit. - Credit terms were net 60 . 15. March 26: - Returned 15 damaged shirts to Chum Bucket and paid the remaining invoice. 16. March 28: - Sold 50 pineapples to Star Enterprises for $1,600 on credit. - Credit terms were 3/10,n/30 17. March 30: - 15 of the pineapples were damaged, so Bikini offered Star Enterprises $150 off their bill to keep the merchandise 18. March 31: - Conducted a physical inventory count revealing 230 pineapples remaining