The Magic Teddy Bear Toy Company entered into the following transactions during January 1996. 1. January 3: 2. January 3: 3. January 9: 4. January 10: 5. January 15: 6. January 19: 7. January 23: 8. January 27: 9. January 28: 10. January 28: 11. January 29: 12. January 30: 13. January 31: 14. January 31: Purchased 7,000 teddy bears at $20 each with the terms 2/10, n/30. Sold 2,000 teddy bears at $50 each for cash. Sold 4,000 teddy bears at $50 each on account. Settled the purchase made on January 3. Purchased 10,000 teddy bears. Three thousand of the bears were purchased for cash at $24.50 each, and the remaining bears were purchased on account for a gross price of $25.00 each (terms 2/10, n/30). Purchased 7,000 teddy bears at $26 each with the terms 2/10, n 30. Paid for one-half of the teddy bears purchased on account on January 15. Purchased 4,000 teddy bears at $28 each for cash. Settled the remaining open account from the purchase made on January 15. Settled the open account from the purchase made on January 19. Sold 6,000 teddy bears at $60 each for cash. Sold 5,000 teddy bears at $60 each on account. Purchased 2,000 teddy bears at $30 each for cash. Received a freight bill covering all purchases made during January 1993 in the amount of $30,000. The Magic Teddy Bear Toy Company has 5,000 teddy bears at $19 each on hand as of January 1, 1996. REQUIRED: Assume that The Magic Teddy Bear Toy Company accounts for purchase cash discounts under the gross method and uses the periodic inventory method. Prepare all necessary entries, includ¬ ing adjusting journal entries, during January 1996 if the company uses the following:

a. LIFO cost flow assumption

b. FIFO cost flow assumption (Hint: Compute the total cost per unit in order to calculate ending inventory and Cost of Goods Sold.)