Question #1:

Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.

1. Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. . Apr. 2 o Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. . Apr. 3 o Paid $300 cash for shipping charges on the April 2 purchase. . Apr. 4 o Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. . Apr. 17 o Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. . Apr. 18 o Purchased $8,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. . Apr. 21 o After negotiations, received from Frist a $500 allowance toward the $8,500 owed on the April 18 purchase. . Apr. 28 o Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.1. Laker Company reported the following January purchases and sales data for its only product. Units Sold at Date Activities Units Acquired at Cost Retail Jan. 1 Beginning Inventory 140 units @ $6.00 = $840 Jan. 10 Sales 100 units @ $15 Jan. 20 Purchase 60 units @ $5.00 = $300 Jan. 25 Sales 80 units @ $15 Jan. 30 Purchase 180 units @ $4.50 $810 Totals 380 units $1,950 180 units The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using: (a) specific identification (b) weighted average (c) FIFO (d) LIFO (Round per unit costs and inventory amounts to cents.) For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory