Required information

Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5)

[The following information applies to the questions displayed below.]

Petes Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Petes Tennis Shop uses a periodic inventory system.

Date			Transactions	Units	Unit Cost					Total Cost
August	1		Beginning inventory	8		$	152				$	1,216
August	4		Sale ($185 each)	5
August	11		Purchase	10			142					1,420
August	13		Sale ($200 each)	8
August	20		Purchase	10			132					1,320
August	26		Sale ($210 each)	11
August	29		Purchase	10			122					1,220
											$	5,176

For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase. rev: 10_13_2016_QC_CS-65854

Problem 6-2B Part 7

7. If Petes chooses to report inventory using LIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)