Journal Entries for Perpetual Inventory System
Idaho Inc Instructions
Assuming Idaho Makes All Sales and Purchases of Inventory

Essay

Journal entries for perpetual inventory system
Idaho Inc. is a wholesale company selling special parts for the automotive industry. The company uses FIFO and a perpetual inventory system. Its inventory records for part SA-123 show the following transactions for the month of May 2020:
$$\begin{array} { | l | l | r | r | r | r | } \hline \text { Date } & \text { Transaction } & \begin{array} { r } \text { Units } \\\text { Purchased }\end{array} & \begin{array} { r } \text { Unit } \\\text { Cost }\end{array} & \begin{array} { r } \text { Units } \\\text { Sold }\end{array} & \begin{array} { r } \text { Unit } \\\text { Selling } \\\text { Price }\end{array} \\\hline \text { May 1 } & \text { Balance } & 120 & \$ 7.00 & & \\\text { May 10 } & \text { Purchase } & 500 & \$ 7.20 & & \\\text { May 15 } & \text { 5ale } & & & ( 100 ) & \$ 12.40 \\\text { May 21 } & \text { 5ale } & & & ( 150 ) & \$ 12.50 \\\text { May 23 } & \text { Purchase } & 250 & \$ 7.30 & & \\\hline\end{array}$$ Instructions
Assuming Idaho makes all sales and purchases of inventory on account, prepare the journal entries for each of the above listed transactions.