A Company That Uses a Perpetual Inventory System Made the Following

Essay

A company that uses a perpetual inventory system made the following cash purchases and sales.There was no beginning inventory.
$$\begin{array} { | l | l | } \hline \text { January 1: } & \text { Purchased } 100 \text { units at \$10per unit } \\\hline \text { February 5: } & \text { Purchased 60 units at \$12per unit } \\\hline \text { March 16: } & \text { Sold40 Units for \$16per unit } \\\hline\end{array}$$
Prepare the general journal entries to record the March 16 sale using the LIFO inventory valuation method.