Extracted text: Instructions a. Record the beginning inventory, the purchases, the cost of goods sold, and the running bal- ance on an inventory subsidiary reccord like the one illustrated on page 335). Use the fastin first out (LIFO) method. b. Prepare general journal entrics to record these purchases and sales in Scptcmber. Assume that all transactions were on account. c. Explain why the company's choice of the LIFO method may result in a more accurate pre- sentation of its income statement than its balance sheet.
Extracted text: Erecutive Suites, Inc., uses a perpetual inventory system. This system includes a perpetual in. PROMLEN ventory record for each of the 60 types of products the company keeps in stock. The following Ptat e transactions show the purchases and sales of a particular desk chair (product code DC-7) during y Pu September: Balance on hand, 50 units, cost $60 each Sept. Sept. 4 Sept. 8 Sept. 9 Sept. 20 Sept. 25 Purchase, 40 units, cost $70 each Sept. 30 Sale, 5 units, sales prica $110 each 1 $3,000 1,300 3,500 2,000 Purchase, 20 units, cost $65 each Sale, 35 units, sales price $100 each Purchase, 40 units, cost $65 each 6,000 2.800 550 Sale, 60 units, sales price $100 each ...... ......