Required 1. Prepare a perpetual inventory record, at FIFO cost, for this merchandise. 2. Make journa

PEI Distributors purchases inventory in crates of merchandise. Assume the
company began July with an inventory of 30 units that cost $300 each.
During the month, the company engaged in the following business transactions:
Jul. 10     Purchased 30 units on account at $320.
       15     Sold 40 units on account at $700.
       22     Purchased 70 units on account at $350.
       29     Sold 75 units on account at $800.
       31     Reported monthly operating expenses of $30,000. The company paid onethird
                with cash and the rest was recorded on account.)
        31    Paid $12,000 of the Accounts Payable balance

Assume PEI Distributors uses the FIFO cost method for valuing inventories. The
company uses a perpetual inventory system.