Q AA Chapter 5 Accounting for Merchandising Businesses 291 8. The following selected transactions were completed during November between R&R Projectz Co. and Creative Company: Nov. 8. R & R Projectz sold merchandise on account to Creative Company, $24,750, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $14,850. R & R Projectz paid freight of $640 for delivery of merchandise sold to Creative Company on November 8. 12. Creative Company returned $5,750 of merchandise purchased on account on November 8 from R & R Projectz. The cost of the goods returned was $3,000. 23. Creative Company paid R & R Projectz for purchase of November 8, less discount and less return of November 12. Instructions Journalize the November transactions for (1) R & R Projectz and (2) Creative Company, assuming both companies use the perpetual inventory system. The following selected transactions were completed during May between Stewart About ime 1,... Beginning inventory, purchases, and sales data for watches are as follows: Inventory Purchases Sales May 1 850 units at $112 May 8 320 units at $120 May 10 600 units 19 98 units at $132 15 405 units 30 172 units a. Assuming that a perpetual inventory system is used, costing by the FIFO method, determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3, on page 310. b. Assuming that the perpetual inventory system is used, costing by the weighted average method, determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4, on page 311