Sheridan Company sells one product. Presented below is information for January for Sheridan Company.

Nov. 1		Inventory		290	units at $8 each
5		Purchase		170	units at $9 each
10		Sale		360	units at $17 each
15		Purchase		360	units at $8.50 each
21		Sale		410	units at $18 each
30		Purchase		340	units at $8.80 each

Sheridan uses the FIFO cost flow assumption. All purchases and sales are on account.

Assume Sheridan uses a periodic system. A. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for November is 390 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Compute gross profit using the periodic system.

Gross profit

B. Assume Sheridan uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Compute gross profit using the perpetual system.