1. Identify and explain the three-step process for tracking inventory.
2. Explain how PCA uses a perpetual inventory system.
3. Define the term merchandise inventory.
4. Explain the terms Average Cost, LIFO and FIFO.
5. What do Invoice Nos.106, 107, and108show? Identify to whom the merchandise was sold, what was purchased, and the amount of the invoice.
6. What are the journal entries for the following transactions when a perpetual inventory system is used: Purchased four pairs of curtains from Ronald Becker Fabrics at $30 each? Sold four pairs of curtains to Paul Moore for $400?
7. What kind of invoice is No.109? Identify this transaction and the amount.