Reference no: EM133095505

Question - PEI Distributors purchases inventory in crates of merchandise. Assume the company began July with an inventory of 30 units that cost $300 each. During the month, the company engaged in the following business transactions:

Jul. 10 Purchased 30 units on account at $320.

Jul. 15 Sold 40 units on account at $700.

Jul. 22 Purchased 70 units on account at $350.

Jul. 29 Sold 75 units on account at $800.

Jul. 31 Reported monthly operating expenses of $30,000. The company paid one-third with cash and the rest was recorded on account.

Jul. 31 Paid $12,000 of the Accounts Payable balance

Assume PEI Distributors uses the FIFO cost method for valuing inventories. The company uses a perpetual inventory system.

Required - Prepare a perpetual inventory record, at FIFO cost, for this merchandise.

Make journal entries to record the company's transactions. No explanations are necessary.