Task #2: Narrative Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system. All sales returns from customers result in goods being returned to inventory, if it is not damaged. You are provided with the following information for Avtosh LLC for the month of November, 2021. Assume that all amounts are settled in cash, no credit transactions. Date Description Quantity Unit cost or selling price 1-Nov Beginning inventory 70 $14,000 6-Nov Purchase 120 $15,000 8-Nov Sale 80 $21,000 12-Nov Sale return* 10 $21,000 15-Nov Purchase 40 $19,000 16-Nov Purchase return 5 $19,000 20-Nov Sale 100 $26,000 25-Nov Purchase 50 $16,000 *includes two damaged car which has scrap value estimated to be at 20% of the its purchase price Instruction: - Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following: a) cost of goods sold b) ending inventory c) gross profit - Compare the results of each inventory valuation method - For each date, prepare journal entry (using AVCO method only) the Company should post to reflect the transaction Task #2: Narrative Avtosh LLC is an car dealer company established in Baku, Azerbaijan. The Company uses perpetual inventory system. All sales returns from customers result in goods being returned to inventory, if it is not damaged. You are provided with the following information for Avtosh LLC for the month of November, 2021. Assume that all amounts are settled in cash, no credit transactions. Date Description Quantity Unit cost or selling price 1-Nov Beginning inventory 70 $14,000 6-Nov Purchase 120 $15,000 8-Nov Sale 80 $21,000 12-Nov Sale return* 10 $21,000 15-Nov Purchase 40 $19,000 16-Nov Purchase return 5 $19,000 20-Nov Sale 100 $26,000 25-Nov Purchase 50 $16,000 *includes two damaged car which has scrap value estimated to be at 20% of the its purchase price Instruction: - Using (1) FIFO and (2) Moving-average cost method (AVCO), calculate the following: a) cost of goods sold b) ending inventory c) gross profit - Compare the results of each inventory valuation method - For each date, prepare journal entry (using AVCO method only) the Company should post to reflect the transaction