QUESTION 1: MERCHANDISING AND INVENTORY VALUATIO 2 of 9 1. A merchandising business sells merchandise for $20.000 cash This merchandise cost the company $12.00 The company uses a perpetual inventory method Prepare the journal entries to record this sale. (4 marks) Date Account Title Ref Debit Credit INVENTORY VALUATIONS Beta Radios uses a periodic inventory system. The beginning inventory of Model X5 radios and the purchases for the year were as follows: (16 marks) Jan. 1 Beginning inventory 1,000 units @ $10.00 Topo Apr. 15 Purchase 500 units @ $12.00 6,000 June 7 Purchase 300 units @ $13.00 3900 Sept. 22 Purchase 1,000 units @ $14.00 14,000 Dec. 4 Purchase 700 units @ $15.00 10600 Total available for sale in the year 3,500 units At December 31, the ending inventory consisted of 1,000 units Determine the cost of the year-end inventory and the cost of goods sold under cach of the following methods of inventory valuation (4 marks for each answer): COST OF INVENTORY GOODS SOLD VALUE AT DEC. 31 FIFO AVERAGE COST