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[solution] » Hairanoia sells industrial-strength hairdryers to professional

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Hairanoia sells industrial-strength hairdryers to professional
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Hairanoia sells industrial-strength hairdryers to professional hairdressers. They began the

2013 fiscal year with $4,500 in inventory.


On March 5, 2013, Hairanoia purchased $5,000 of inventory on credit.

On May 9, 2013, Hairanoia sold 10 hairdryers to Shear Madness for $4,500. The client paid

in cash. The inventory cost the company $300 per unit.


a) Assuming that Hairanoia uses a perpetual inventory system, record the J/E for March 5.


DR. Inventory 5,000

CR. Accounts payable 5,000


b) Assuming that Hairanoia uses a perpetual inventory system, record t

 







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