Khanh's Department Store, Ltd. uses a perpetual inventory system with moving-average cost; terms for all transactions n/30, FOB destination. Data for product E2-D2 include the following purchases: On...

Extracted text: Khanh's Department Store, Ltd. uses a perpetual inventory system with moving-average cost; terms for all transactions n/30, FOB destination. Data for product E2-D2 include the following purchases: On May 7, 50units @E12 per unit; and on May 28, 30Ounits @£14 per unit. On May 10, Khanh's sold 30 units, and on May 30, 35 units at the selling price of £25 per unit. Freigh cost of 1% selling price. On May 31, actual inventory on hand less than records by 2 units. Instructions: a. Prepare the perpetual inventory schedule for the above transactions using moving- average cost. b. Prepare journal entries for transactions, adjustments, and closings of the period.