QUESTION 1: MERCHANDISING AND INVENTORY VALUATIONS (20 MARKS 1. A merchandising businesses ng business sells merchandise for $20,000 cash. This matchandises bid or $20.000 cash. This marcha the company $12,000. the company uses a perpetual inventory method. Prepare the journal entries to record this sale (4 marks) Date Account Title Ref Debit INVENTORY VALUATIONS Beta Radios uses a periodic inventory system. The beginning inventory of Model XS radios and the purchases for the year were as follows (16 marks) Jan. 1 Beginning inventory Apr. 15 Purchase 1,000 units @ $10.00 500 units @ $12.00 300 units @ $13.00 1,000 units @ $14.00 TOPO 6900 3900 June 7 Purchase Sept. 22 Purchase Dec. 4 Purchase 700 units @ $15.00 11500 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 each of the following methods of inventory valuation (4 marks for each answer): COST OF INVENTORY GOODS SOLD VALUE AT DEC. 31 FIFO AVERAGE COST