Put It into Practice LO 7.1 Record Inventory FACTS Assume that The Gap uses a perpetual inventory system. Beginning inventory consists of 50 T-shirts that cost $34 each. During June, The Gap purchased 150 units at $34 each on account, returned 6 T-shirts for credit, and sold 125 T-shirts for $45 each on account. INSTRUCTIONS a. Journalize the June inventory transactions for The Gap. b. Use a T-account to post the June transactions to the inventory account and calculate the ending inventory balance.

FACTS Assume that The Gap uses a perpetual inventory system. Beginning inventory consists of 50T-shirts that cost $34 each. During June, The Gap purchased 150 units at $34 each on account, returned 6T-shirts for credit, and sold 125 T-shirts for $45 each on account. INSTRUCTIONS a. Journalize the June inventory transactions for The Gap. b. Use a T-account to post the June transactions to the inventory account and calculate the ending inventory balance