Color Images,Inc

Essay

Color Images,Inc.started March 1,20X3 with an inventory balance of 20 pieces of lumber originally purchased for $2.00 per piece.During the month,the company purchased 100 pieces of lumber for $2.00 per piece for cash and sold 50 pieces of lumber on account to one contractor for $5.00 per piece.At the end of March,20X3,Color Images,Inc.conducted a physical inventory of its lumber and accounted for 66 pieces of lumber.The company uses a perpetual inventory system.Make the necessary journal entries for the month of March,20X3.