I am practicing how to do the journlaized inventory transactions under each of the methods : FIFO, LIFO, and weighted-average I just need help to make sure I'm doing everything correctly.The accounts are : cash, cost of gold sold, merchandise inventory, and sales revenue.The data table is hereDateDescription UnitsPer UnitJan 1Inventory on hand5,000$11Jan 3purchase9,000$13Jan 6sale8,500$23Jan 15purchase13,000$15Jan 22sale12,000$23make sure to use 2 decimal places for each of the numbers ### Journal Entries for Inventory Transactions**Date: January / FIFO**---- **03** - *Account/Explanation:* [to record purchase of inventory] - *Post Ref:* - *Debit:* - *Credit:* - **06** - *Account/Explanation:* [to record sale of merchandise] - *Post Ref:* - *Debit:* - *Credit:* - **06** - *Account/Explanation:* [to record FIFO cost of inventory sold] - *Post Ref:* - *Debit:* - *Credit:* - **12** - *Account/Explanation:* [to record purchase of inventory] - *Post Ref:* - *Debit:* - *Credit:* - **15** - *Account/Explanation:* [to record sale of merchandise] - *Post Ref:* - *Debit:* - *Credit:* - **15** - *Account/Explanation:* [to record FIFO cost of inventory sold] - *Post Ref:* - *Debit:* - *Credit:* - **22** - *Account/Explanation:* [to record sale of merchandise] - *Post Ref:* - *Debit:* - *Credit:* - **22** - *Account/Explanation:* [to record FIFO cost of inventory sold] - *Post Ref:* - *Debit:* - *Credit:* ---This sheet is structured to record entries for the purchase and sale of inventory using the FIFO (First In, First Out) method. Each transaction date is followed by the necessary accounting action, denoted by the explanation of the entry. Debit and credit columns are ready to be filled based on the transaction details post-reference to the ledger. The image displays an accounting spreadsheet for January under the Last-In, First-Out (LIFO) inventory accounting method. The spreadsheet includes columns for Date, Account/Explanation, Reference (Ref.), Debit, and Credit. Here is the detailed transcription:### Date: January1. **03** - **Explanation**: to record purchase of inventory. - **Ref.:** [Blank] - **Debit:** [Blank] - **Credit:** [Blank]2. **06** - **Explanation**: to record sale of merchandise. - **Ref.:** [Blank] - **Debit:** [Blank] - **Credit:** [Blank]3. **06** - **Explanation**: to record LIFO cost of inventory sold. - **Ref.:** [Blank] - **Debit:** [Blank] - **Credit:** [Blank]4. **15** - **Explanation**: to record purchase of inventory. - **Ref.:** [Blank] - **Debit:** [Blank] - **Credit:** [Blank]5. **22** - **Explanation**: to record sale of merchandise. - **Ref.:** [Blank] - **Debit:** [Blank] - **Credit:** [Blank]6. **22** - **Explanation**: to record LIFO cost of inventory sold. - **Ref.:** [Blank] - **Debit:** [Blank] - **Credit:** [Blank]The sheet outlines transactions and related entries for maintaining financial records based on the LIFO method, although specific amounts, references, and detailed account names are not filled in.

Name: I am practicing how to do the journlaized inventory transactions under
Uploaded: 2024-03-04T10:43:15.000Z
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Description: I am practicing how to do the journlaized inventory transactions under each of the methods : FIFO, LIFO, and weighted-average I just need help to make sure I'm doing everything correctly.The accounts are : cash, cost of gold sold, merchandise invent

Answered: The accounts are : cash, cost of gold…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I am practicing how to do the journlaized inventory transactions under each of the methods : FIFO, LIFO, and weighted-average

I just need help to make sure I'm doing everything correctly.

The accounts are : cash, cost of gold sold, merchandise inventory, and sales revenue.

The data table is here

Date	Description	Units	Per Unit
Jan 1	Inventory on hand	5,000	$11
Jan 3	purchase	9,000	$13
Jan 6	sale	8,500	$23
Jan 15	purchase	13,000	$15
Jan 22	sale	12,000	$23

make sure to use 2 decimal places for each of the numbers

### Journal Entries for Inventory Transactions

**Date: January / FIFO**

---

- **03**
- *Account/Explanation:* [to record purchase of inventory]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **06**
- *Account/Explanation:* [to record sale of merchandise]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **06**
- *Account/Explanation:* [to record FIFO cost of inventory sold]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **12**
- *Account/Explanation:* [to record purchase of inventory]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **15**
- *Account/Explanation:* [to record sale of merchandise]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **15**
- *Account/Explanation:* [to record FIFO cost of inventory sold]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **22**
- *Account/Explanation:* [to record sale of merchandise]
- *Post Ref:*
- *Debit:*
- *Credit:*

- **22**
- *Account/Explanation:* [to record FIFO cost of inventory sold]
- *Post Ref:*
- *Debit:*
- *Credit:*

---

This sheet is structured to record entries for the purchase and sale of inventory using the FIFO (First In, First Out) method. Each transaction date is followed by the necessary accounting action, denoted by the explanation of the entry. Debit and credit columns are ready to be filled based on the transaction details post-reference to the ledger.

The image displays an accounting spreadsheet for January under the Last-In, First-Out (LIFO) inventory accounting method. The spreadsheet includes columns for Date, Account/Explanation, Reference (Ref.), Debit, and Credit. Here is the detailed transcription:

### Date: January
1. **03**
- **Explanation**: to record purchase of inventory.
- **Ref.:** [Blank]
- **Debit:** [Blank]
- **Credit:** [Blank]

2. **06**
- **Explanation**: to record sale of merchandise.
- **Ref.:** [Blank]
- **Debit:** [Blank]
- **Credit:** [Blank]

3. **06**
- **Explanation**: to record LIFO cost of inventory sold.
- **Ref.:** [Blank]
- **Debit:** [Blank]
- **Credit:** [Blank]

4. **15**
- **Explanation**: to record purchase of inventory.
- **Ref.:** [Blank]
- **Debit:** [Blank]
- **Credit:** [Blank]

5. **22**
- **Explanation**: to record sale of merchandise.
- **Ref.:** [Blank]
- **Debit:** [Blank]
- **Credit:** [Blank]

6. **22**
- **Explanation**: to record LIFO cost of inventory sold.
- **Ref.:** [Blank]
- **Debit:** [Blank]
- **Credit:** [Blank]

The sheet outlines transactions and related entries for maintaining financial records based on the LIFO method, although specific amounts, references, and detailed account names are not filled in.

Expert Solution

Step 1: Introduction:

FIFO is first in first out which means inventory bought first is sold first.
LIFO is last in first out method means inventory bought last is sold first.
Inventory means the detailed list or stock of items, goods, or materials held by a business or individual.
The inventory is recorded in the current asset section of the Balance Sheet.
Ending inventory is the difference between number of units available for sale and number of units sold.

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