Question

Question:Golf Unlimited carries an inventory of putters and other golf clubs. The sales price of each putter is \(119. Company records indicate the following for a particular line ofGolf Unlimited’s putters:

Date Item Quantity Unit Cost

Nov. 1 Balance 24 \) 53

6 Sale 20

8 Purchase 30 70

17 Sale 30

30 Sale 2

Requirements

2. Journalize Golf Unlimiteds inventory transactions using the LIFO inventory costingmethod. (Assume purchases and sales are made on account.)

Short answer

The total of journal book matches at $11,554.

Step-by-step solution

Step-by-Step-SolutionStep1: Journal Entry (part 1)

	Journal entry
Date	Description	Debit	Credit
Nov 6	Accounts Receivables	$2,380
	Sales Revenue		$2,380
	Being sales made on account
	Cost of goods sold	$1,060
	Inventory		$1,060
	Being cost of goods sold recorded
8	Inventory	$2,100
	Accounts Payable		$2,100
	Being Inventory purchased on account
	Balance c/d	$5,540	$5,540

Journal Entry (part 2)

	Journal entry
Date	Description	Debit	Credit
	Balance c/d	$5,540	$5,540
Nov 17	Accounts Receivables	$3,570
	Sales Revenue		$3,570
	Being sales made on account
	Cost of goods sold	$2,100
	Inventory		$2,100
	Being cost of goods sold recorded
30	Accounts Payable	$238
	Sales Revenue		$238
	Being Inventory purchased on account
	Cost of goods sold	$106
	Inventory		$106
	Being cost of goods sold recorded
	Balance c/d	$11,554	$11,554