Use the perpetual inventory method with the FIFO valuation method. Please see the "Milestone Inventory" tab in your workbook for purchase and sales information.

August 25: Purchased 15 golf club sets for $240 each to sell at the store from vendor A, on account with terms of 1/10 net 60.

September 16: Purchased 25 bicycles for $75 each to sell at the store from vendor B, on account with terms of 1/10 net 60.

September 24: Paid $750 toward merchandise from vendor A.

September 30: Recorded impact of sales transaction on COGS and the inventory asset.

October 18: Paid $650 toward merchandise from vendor B.

October 25: Paid remaining payable for merchandise from vendor A.

October 26: Purchased 25 more golf club sets for $250 each to sell at the store from vendor A, on account with terms of 1/10 net 60.

October 31: Recorded impact of sales transaction on COGS and the inventory asset.

November 10: Paid remaining payable for merchandise from vendor B.

November 16: Purchased 35 more bicycle sets for $85 to sell at the store each from vendor on account with terms of 2/10 net 30.

November 20: Paid vendor B in full and took advantage of the discount (offset COGS).

November 30: Recorded impact of sales transaction on COGS and the inventory asset.

December 10:Paid $4500 toward payable for merchandise from Vendor A.

December 31: Recorded impact of sales transaction on COGS and the inventory asset.