Question:This problem continues the Crystal Clear Cleaning problem begun in Chapter 2 and continued through Chapter 5.
Consider the December transactions for Crystal Clear Cleaning that were presentedin Chapter 5. (Cost data have been removed from the sale transactions.) Crystal Clearuses the perpetual inventory system.
Dec. 2 Purchased 1,000 units of inventory for \(4,000 on account from Sparkle
Company on terms, 5/10, n/20.
5 Purchased 1,200 units of inventory from Borax on account with terms
4/10, n/30. The total invoice was for \)6,000, which included a \(300
freight charge.
7 Returned 300 units of inventory to Sparkle from the December 2
purchase.
9 Paid Borax.
11 Sold 500 units of goods to Happy Maids for \)5,500 on account with
termsn/30.
12 Paid Sparkle.
15 Received 100 units with a sales price of \(1,100 of goods back from
customer Happy Maids.
21 Received payment from Happy Maids, settling the amount due in full.
28 Sold 500 units of goods to Bridget, Inc. on account for \)6,500. Terms
1/15,n/30.
29 Paid cash for utilities of \(550.
30 Paid cash for Sales Commission Expense of \)214.
31 Received payment from Bridget, Inc., less discount.
31 Recorded the following adjusting entries:
a. Physical count of inventory on December 31 showed 800 units of
goods on hand.
b. Depreciation, \(150.
c. Accrued salaries expense of \)2,100.
d. Estimated sales returns of \(1,500, with cost of \)540.
e. Prepared all other adjustments necessary for December (Hint: You willneed to review the adjustment information in Chapter 3 to determinethe remaining adjustments). Assume the cleaning supplies left atDecember 31 are $50.
Requirements
1. Prepare perpetual inventory records for December for Crystal Clear Cleaning usingthe FIFO inventory costing method. (Note: You must calculate the cost of goodssold on the 11th, 28th, and 31st (adjusting entry a).) Round per unit costs to twodecimal places.
