A Company That Uses a Perpetual Inventory System Made the Following

question 80

Essay

A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory.
$\begin{array}{|l|l|}\hline \text { January 1: } & \text { Purchased } 100 \text { units at } \$ 10 \text { per unit } \\\hline \text { February 5: } & \text { Purchased } 60 \text { units at } \$ 12 \text { per unit } \\\hline \text { March 16: } & \text { Sold } 40 \text { Units for } \$ 16 \text { per unit } \\\hline\end{array}$ Prepare general journal entries to record the March 16 sale using the FIFO inventory valuation method.

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Definitions:

Contact Metamorphism

A type of metamorphism that occurs when rocks are heated by the intrusion of hot magma without melting.

Subduction

The process whereby one tectonic plate moves under another plate and is forced to sink into the mantle, often leading to volcanic activity and earthquakes.

Normal Faulting

A type of faulting where the crust is extended and the hanging wall moves down relative to the footwall.

Partly Metamorphic

Relating to rocks that have been partially altered in structure or composition by heat, pressure, or chemical processes.