Company z had the following transactions in its first year of operations: (1)on january 15, purchased 5,000 units of inventory for $20 each (2)on march 1, purchased 10,000 units of inventory for $22 each (3)on march 30, sold 7,000 units of inventory for $48 each (4)on june 20, purchased 9,000 units of inventory for $25 each (5)on august 10, sold 12,000 units of inventory for $50 each (6)on september 3, sold 1,000 units of inventory $49 each company z records transactions using a perpetual system. calculate the cost of goods sold and ending inventory using (1) average cost, (2) fifo, and (3) lifo. company z asks you to advise them on which inventory method to use. what method would you choose if the company wants to take out a loan from a bank in the near future that requires the company to meet a large threshold for its current assets’ value? what method would you choose if the company has a near-term investment opportunity that requires more cash on hand? explain your answers

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?