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Creative Awnings had the following sales and purchase transactions during 2013. Beginning inventory consisted of 50 items at $350 each. The company uses the FIFO cost flow assumption and keeps perpetual inventory records.
Required:
a. Record the inventory transactions in general journal format.
b. Calculate the gross margin Creative Awnings would report on the 2013 income statement.
c. Determine the ending inventory balance Creative Awnings would report on the December 31, 2013, balance sheet.
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