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.
$$\begin{array} { | l | l | } \hline \text { January 1: } & \text { Purchased } 100 \text { units at } \$ 10 \text { per unit } \\\hline \text { February 5: } & \text { Purchased } 60 \text { units at } \$ 12 \text { per unit } \\\hline \text { March 16: } & \text { Sold } 40 \text { Units for } \$ 16 \text { per unit } \\\hline\end{array}$$
Prepare general journal entries to record the March 16 sale using the FIFO inventory valuation method.