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Home Hardware reported beginning inventory of 30 shovels, for a total cost of $90. The company had the following transactions during the month:

January 2	Sold 7 shovels on account at a selling price of $10 per unit.
January 16	Sold 12 shovels on account at a selling price of $10 per unit.
January 18	Bought 4 shovels on account at a cost of $3 per unit.
January 19	Sold 12 shovels on account at a selling price of $10 per unit.
January 24	Bought 12 shovels on account at a cost of $3 per unit.
January 31	Counted inventory and determined that 13 units were on hand.

1. Prepare the journal entries that would be recorded using a perpetual inventory system, including any book-to-physical adjustment that might be needed.Sold 7 shovels on account at a selling price of $10 per unit. Record the transaction.

2

Record the cost of goods sold under the perpetual inventory system.

3

Sold 12 shovels on account at a selling price of $10 per unit. Record the transaction.

4

Record the cost of goods sold under the perpetual inventory system.

5

Bought 4 shovels on account at a cost of $3 per unit. Record the transaction.

6

Sold 12 shovels on account at a selling price of $10 per unit. Record the transaction.

7

Record the cost of goods sold under the perpetual inventory system.

8

Bought 12 shovels on account at a cost of $3 per unit. Record the transaction.

9

At month end, counted inventory and determined that 13 units were on hand. Record the "book-to-physical" adjustment