Reed Corp. Debit To ilustrate the different inventory cost fiow assummptions, consider the following example of Russell Company, which purchesed inventory at three different imes at three different prices. 2 Accounts Receivable-Brady Go Salesv Units Cost per Unit Total C 812 420 Cost of Goods Sold 520x 15 Purchase 20 Purchase s evailabe for sale 105 35 665 Merchandise Ivent Russel purchased a total of 105 units, which cost a total of 31,855. On May 31st customer purchased 35 units. Rssal's selling price was26 per unit. L,040 x To illustrate the different Inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three dfarant prices. 1,0 Accounts Payable Units Cost per Unit Totel C 10 Sales Returns and Allowancds 1,040X 1 Purchase 15 Purchare 20 Purchars s available for sale 20 s 12 s 240 18 300 Accounts 60 1,060 1,040 x Russell purchased a total of 60 units, which cost a total of $1,050. On May 31st a customer purchased 20 units. Russell's selling price was $26 per unit. Cost of Goods Sold Cash Reed Corp, is a medium-sized manufacturer of electronic components that supplies Brady Co. with many component parts Brady Co. aso supplies Reed wit some of the finish d productsdevelops. Hence, both companies purchase from and all marchandi to each other. Both companes are located in Oregon which has no sales tax, and both companies use a parpetual inventory system. Therefore, sales tax does not apply to any of these transactions and you should record merchandise transactions using the perpetual inventory method Analyze each transaction (described by rolling over the date from the perspective of each parti. In the first journal space, record each transaction it affects Reed Corp., on the appropriate day. Then reoord the same transaction in the bottom journal space as it affects Brady Co 1,040X Cashv r no entry is required, selectNo entry fequired, and leave the amount boxes blank. 1f compound entries, for those beoes in which no entry is required, leame the box blank Drady Co. Accounts Payable-Reed Cory Merchandise Cashv Buyer, Inc Accounts Rocelvable Reed C Salesv TOh: c:noem: drrv:n tne mrhrdco doivc.sc to Brv:.nk. Thc cect oi to mordhordisc i:3797, Bott c ror c !sca carpet glimertory tb Cost of Goods Sol Seller Co. 041V Merchandise Invente 197 Hay 14 ble Reed Con. Cashv 797 Buve Inc Sales Disc Reed Corp. Debit To ilustrate the different inventory cost fiow assummptions, consider the following example of Russell Company, which purchesed inventory at three different imes at three different prices. 2 Accounts Receivable-Brady Go Salesv Units Cost per Unit Total C 812 420 Cost of Goods Sold 520x 15 Purchase 20 Purchase s evailabe for sale 105 35 665 Merchandise Ivent Russel purchased a total of 105 units, which cost a total of 31,855. On May 31st customer purchased 35 units. Rssal's selling price was26 per unit. L,040 x To illustrate the different Inventory cost flow assumptions, consider the following example of Russell Company, which purchased inventory at three different times at three dfarant prices. 1,0 Accounts Payable Units Cost per Unit Totel C 10 Sales Returns and Allowancds 1,040X 1 Purchase 15 Purchare 20 Purchars s available for sale 20 s 12 s 240 18 300 Accounts 60 1,060 1,040 x Russell purchased a total of 60 units, which cost a total of $1,050. On May 31st a customer purchased 20 units. Russell's selling price was $26 per unit. Cost of Goods Sold Cash Reed Corp, is a medium-sized manufacturer of electronic components that supplies Brady Co. with many component parts Brady Co. aso supplies Reed wit some of the finish d productsdevelops. Hence, both companies purchase from and all marchandi to each other. Both companes are located in Oregon which has no sales tax, and both companies use a parpetual inventory system. Therefore, sales tax does not apply to any of these transactions and you should record merchandise transactions using the perpetual inventory method Analyze each transaction (described by rolling over the date from the perspective of each parti. In the first journal space, record each transaction it affects Reed Corp., on the appropriate day. Then reoord the same transaction in the bottom journal space as it affects Brady Co 1,040X Cashv r no entry is required, selectNo entry fequired, and leave the amount boxes blank. 1f compound entries, for those beoes in which no entry is required, leame the box blank Drady Co. Accounts Payable-Reed Cory Merchandise Cashv Buyer, Inc Accounts Rocelvable Reed C Salesv TOh: c:noem: drrv:n tne mrhrdco doivc.sc to Brv:.nk. Thc cect oi to mordhordisc i:3797, Bott c ror c !sca carpet glimertory tb Cost of Goods Sol Seller Co. 041V Merchandise Invente 197 Hay 14 ble Reed Con. Cashv 797 Buve Inc Sales Disc