Question

Riverbed Company sells one product. Presented below is information for January for Riverbed Company. Jan. 1 Inventory 103 units at $5 each 4 Sale 82 units at $8 each 11 Purchase 135 units at $7 each 13 Sale 102 units at $9 each 20 Purchase 167 units at $7 each 27 Sale 108 units at $11 each Riverbed uses the FIFO cost flow assumption. All purchases and sales are on account. Assume Riverbed uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 113 units.

Date Account Titles and Explanation Debit Credit

jan 1

jan 11

jan 13

jan 20

jan 27

jan 31

Assume Riverbed uses a perpetual system. Prepare all necessary journal entries.

Date

Account Titles and Explanation

Debit

Credit

jan 1

jan 4

jan 11

jan 13

jan 20

jan 27

jan 31

Answer 1