1. The August 19 purchase of inventory was on account.
2. The August 28 sale of inventory was on account. Famius Sportswear sold each helmet for $103.
1 The August 19 Purchase Of Inventory Was On Account 2 The August 28 Sale Of Inventory Was On Account Famius Sportsw 1 (23.15 KiB) Viewed 11 times
1 The August 19 Purchase Of Inventory Was On Account 2 The August 28 Sale Of Inventory Was On Account Famius Sportsw 2 (23.15 KiB) Viewed 11 times
1 The August 19 Purchase Of Inventory Was On Account 2 The August 28 Sale Of Inventory Was On Account Famius Sportsw 3 (17.13 KiB) Viewed 11 times
1 The August 19 Purchase Of Inventory Was On Account 2 The August 28 Sale Of Inventory Was On Account Famius Sportsw 4 (33.74 KiB) Viewed 11 times
Famous Sportwears uses the (perpetual) LIFO inventory method. Famous Sportwears started August with 4 helmets that cost $52 each. On August 19, Famous Sportwears bought & heimets at $51 each. On August 21, Famous Sportwears sold helmets. 1. The August 19 purchase of inventory was on account. 2. The August 28 sale of inventory was on account. Famous Sportwears sold each helmet for $103 Prepare the required joumal entries for the purchase and sale of inventory: (Record debits first, then credits. Exclude explanations from any joumal entries.) 1. Prepare the journal entry for the purchase of inventory on account August 19: Famous Sportwears bought 6 helmets at $51 each Aug Date 19 Journal Entry Accounts 2. Prepare the journal entry for the sale of inventory on account. Degin by journalizing the revenue portion of the sale Debit Credit GED
2. Prepare the journal entry for the sale of inventory on account. Begin by journalizing the revenue portion of the sale. August 28: Famous Sportwears sold 6 helmets. Famous Sportwears sold each helmet for $103. (Do not joumalize the cost related to the sale yet. We will do this in the next journal entry.) Aug Date 28 Journal Entry Accounts Debit Credit
Now journalize the cost of the sale on the 28th under the LIFO method. August 28: Famous Sportwears sold 6 helmets. Aug Date 28 Journal Entry Accounts Debit Credit
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