A company uses the periodic inventory system, and the following information is available. All purchases and sales are on credit. 1. Prepare the general journal entries to record:
The October 6 purchase.
The October 12 sale.
2. Assuming the periodic inventory system is used, determine both the cost of the ending inventory and the cost of goods sold using the LIFO method for October.

Question

A company uses the periodic inventory system, and the following information is available. All purchases and sales are on credit.  1. Prepare the general journal entries to record:
The October 6 purchase.
The October 12 sale.
2. Assuming the periodic inventory system is used, determine both the cost of the ending inventory and the cost of goods sold using the LIFO method for October.

A Company Uses the Periodic Inventory System, and the Following