[mdodson1]

I am working on account homework and stuck. I need to calculate the LIFO and FIFO ending inventory, cost of goods sold, and gross profit but I have sale returns and purchase returns. I guess I'm unclear as to how to correct them. Here is an example:
Date description Quantity Unit cost
1 Beg Inv 25 60
2 Pur 85 64
3 Sale 70 90
4 sale return 5 90
5 purchase 40 68
6 purchase return 15 68
7 sale 50 95
8 purchase 20 75


Answers for LIFO Gross Profit is 2920
FIFO Gross Profit is 3320


Help please I am going crazy trying to figure out how they got this answer

[morgaine300]

It looks like this is periodic. The trick is not making those returns complicated. For instance, on the 5 & 6 you have a purchase and then a return at the same cost. So you netted a purchase of 25 units. Just list it as 25 units @ $68 and there isn't anything different about it.

(Same with the sales - 70 sales and 5 return, so net 65 units. So a total of 115 were sold altogether.)