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Question: Dublin Company has a beginning inventory of $42,000 using LIFO. During the third quarter, they sell inventory which cost $120,000, or $32,000 more than they purchased, thus eroding away the inventory. They plan to replace the inventory by year end at a cost of $37,500.
1) Prepare the cost of goods sold entry for the third quarter. Remember to record the entire cost of goods sold.
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