Required information

Skip to question

[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		$	156				$	1,248
August	4		Sale ($205 each)	5
August	11		Purchase	10			146					1,460
August	13		Sale ($220 each)	8
August	20		Purchase	10			136					1,360
August	26		Sale ($230 each)	11
August	29		Purchase	12			126					1,512
											$	5,580

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

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.)