Question: Prepare journal entries for the following transactions using your choice of costing method (i.e. either FIFO, LIFO, or Weighted Average). Be sure to indicate the method used at the top of the inventory costing worksheet.
2-May Purchase 10,000 units of inventory on credit or $50,000. Credit terms are 1/30,n/90
4-May Purchase 8,000 units of inventory with $48,000 cash
6-May Sell 6,500 units of inventory for $65,000 cash
10-May Sell 4,500 units of inventory on credit for $54,000. Credit terms are 2/10,n/30
15-May Purchase 12,000 units of inventory with $54,000 cash
16-May Buyer from 5/6 received 500 damaged units, send $5,000 cash refund
20-May Receive payment from 5/10 buyer, discount is taken
30-May Send payment for 5/2 inventory purchased, take discount