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Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had...

Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had 30 units of inventory, of which 10 units were purchased in March for $60 per unit and 20 units were purchased in April for $66 per unit. STC uses its perpetual inventory system to account for the following transactions.

May 2 STC shipped 25 units of inventory to customers for $150 per unit, on credit terms n/60, FOB shipping point.
May 4 STC purchased and received 20 units of inventory for $70 per unit, on credit terms n/45.
May 8 STC shipped 20 units of inventory to customers for $150 per unit, on credit terms n/60, FOB shipping point.

Required:
Assume STC uses FIFO in its perpetual inventory system. Prepare the journal entry for each transaction.

Date General Journal Debit Credit
1 May 02 Accounts Receivable 3,750
Sales Revenue 3,750
2 May 02 Cost of Goods Sold
Inventories
3 May 04 Inventories
Accounts Payable
4 May 08 Accounts Receivable
Sales Revenue
5 May 08 Cost of Goods Sold
Inventories

Solutions

Expert Solution

Journal Entries:

Journal Entries:

ekkarill92 answered 2 years ago
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