July 5 Purchases 52 LCD televisions on account from Red River Supplies for $3,10
ID: 2529288 • Letter: J
Question
July 5 Purchases 52 LCD televisions on account from Red River Supplies for $3,100 each, terms 4/10, n/30. July 8 Returns to Red River two televisions that had defective sound. July 13 Pays the full amount due to Red River. July 28 Sells remaining 50 televisions from July 5 for $3,600 each on account. Required: Record the transactions of Sundance Systems, assuming the company uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Record:
Purchases 52 LCD televisions on account from Red River Supplies for $3,100 each, terms 4/10, n/30.
Returns to Red River two televisions that had defective sound.
Pays the full amount due to Red River.
Record the sale of inventory on account.
Record the cost of inventory sold.
Explanation / Answer
Journal Entries (Amounts in $)
Date Account Titles and Explanations Debit Credit July 5 Inventory (52*$3,100) 161,200 Accounts Payable 161,200 (To record the purchases on account) July 8 Accounts Payable 6,200 Inventory (2*$3,100) 6,200 (To record the purchase return) July 13 Accounts Payable (161,200-6,200) 155,000 Purchase Discounts ($155,000*4%) 6,200 Cash ($155,000-$6,200) 148,800 (To record the amount paid to Red River) July 28 Accounts Receivable (50*$3,600) 180,000 Sales Revenue 180,000 (To record the sales revenue) July 28 Cost of Goods Sold (50*$3,100) 155,000 Inventory 155,000 (To record the cost of goods sold)Related Questions
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