ABC, Inc. uses the LIFO periodic cost flow assumption. They…

ABC, Inc. uses the LIFO periodic cost flow assumption. They sell their product for $20 per unit each year. At the end of 2022 ABC, Inc. reports the following ending inventory (and related costs per unit) related back to prior year purchases that have yet to be “sold”:   20,000 units (purchases exceeded sales in 2019 @ $9 cost per unit)             = $180,000 10,000 units (purchases exceeded sales in 2020 @ $10 cost per unit)           = $100,000 20,000 units (purchases exceeded sales in 2021 @ $11 cost per unit)           = $220,000 10,000 units (purchases exceeded sales in 2022 @ $12 cost per unit)           = $120,000 60,000 units total in ending inventory                                                                = $620,000   In 2023, ABC, Inc. has a great year and sales exceed purchases by 50,000 units!  The units purchased in 2023 cost $14 per unit.  How much is 2023 net income going to be inflated due to liquidation of old inventory layers (at lower costs than current costs)?

On January 1, 2012 XYZ sells 10,000 units of inventory to AB…

On January 1, 2012 XYZ sells 10,000 units of inventory to ABC.  The list price of each unit of inventory sold is $20.  Due to the high volume of inventory purchased by ABC, XYZ offers a 10% trade discount on this purchase price.  In addition, XYZ offers a cash discount with term 3/15, n/45 to encourage faster collection.  XYZ uses the net method to account for cash discounts.  ABC pays for the inventory on January 13th to pay off the balance in full. What is the revenue journal entry that XYZ will record on January 1, 2012?