Using the facts that follow, use a Multi-Step Income Statement and Ending Inventory Calculations, e to find Cost of Goods Sold and Net Income SHOW YOUR WORK 3 4 Net sales 5 Beginning inventory 6 Net purchases 7 Ending inventory 8 Operating expenses 45,000 31,500 22,500 36,000 13,500 9 Income Statement Inventory Calculations 10 11 12 13 14 15 16 17 18 19 20 M. Sten Income Stret Journal Entries-Buyer Journal Entries... Prepare joumal entries for BD Corporation (the purchaser). BD Corporation uses the Perpetual Inventory Accounting method: BD Corporation purchased $9000 of inventory from MH Corporation with purchase terms 3/15, n/30. MH Corporation's cost was 5400 July 1 BD Corporation retumed S2700 of inventory to MH Corporation BD Corporation pays for $4500 of the inventory July 15 BD Corporation pays for the remaining $1800 of the inventory June 29 July 3 Date Debit Credit Prepare joumal entries for MH Corporation (the seller) MH Corporation uses the Perpetual Inventory Accounting method: June 29 July 1 July 3 July 15 BD Corporation purchased $9000 of inventory from MH Corporation with purchase terms 3/15, n/30. MH Corporation's cost was $5400 July 1. BD Corporation returned $2700 of the $9000 inventory to MH Corporation. MH Corporation's cost of the inventory was $1620 BD Corporation pays for $4500 of the inventory BD Corporation pays for the remaining S1800 of the inventory Debit Credit Date 0 1 12 13 14 15 16 17 18 19 20 23 G H 3 You are given the following information for XYZ Company for the month ended June 30. XYZ uses the periodic method for inventory Date Description Units Unit Cost or Selling Price N Beginning 1-Jun 50 45 inventory 5-Jun Purchase 115 49.50 6-Jun Sale 90 67.50 10-Jun Purchase 70 54,45 15-Jun Sale 40 74.25 23-Jun Purchase 65 59.90 30-Jun Sale 80 81.68 Calculate i) ending inventory, il) cost of goods sold for EACH of the LIFO, FIFO and Average Cost cost 2 flow methods. 3 4 5 6 7