Fido Inc. assumes a weighted average costing method within Its periodic inventory system. Its beginning inventory balance was $40,000.

Assume that .I-Mart uses a perpetual weighted a~erage Inventory system. During the period, It sold 14
units on account to one customer. Demonstrate the Journal entry required to record tile sale and tile
cost of tile sale by selecting all of the correct items below. (Check all tllatapp!y.)
Jan1 Beginning Inventor 10@$12
Mays Purchase 10@$15
Augs Sale 14 units x $50 each

 Sales Is credited for $700.
Merchandise Inventory Is credited for $700.
Merchandise Inventory Is credited for $189.
Accounts Receivable is debited for $700
Cost of Goods Sold Is credited for $189.
Sales Is debited for $700.
Cost of Goods Sold Is debited for $700.
Cost of Goods Sold Is debited for $189.
Merchandise Inventory Is debited for $189.




Fido Inc. assumes a weighted average costing method within Its periodic inventory system. Its
beginning inventory balance was $40,000. At the end of the year, its ending inventory balance was
$52,000. Demonstrate your knowledge of the required journal entry to replace the old merchandise
inventory balance with the new ending inventory balance by selecting a// of the correct actions below.
(Check all that apply.)

Debit Merchandise Inventory $40,000 and credit Income Summary $40,000.
Debit Income Summary $52,000 and credit Merchandise Inventory $52,000.
Debit Income Summary $40,000 and credit Merchandise Inventory $40,000.
Debit Merchandise Inventory $52,000 and credit Income Summary $52,000.