Question

Sundance Systems has the following transactions during July. July 5 Purchases 46 LCD televisions on account from Red River Supplies for $2,800 each, terms 2/10, n/30. July 8 Returns to Red River six televisions that had defective sound. July 13 Pays the full amount due to Red River July 28 Sells remaining 40 televisions from July 5 for $3,300 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.) View transaction list Journal entry worksheet Purchases 46 LCD televisions on account from Red River Supplies for $2,800 each, terms 2/10, n/30 Note: Enter debits before credits Date Debit Credit July 05 Inventory Accounts payable Record entry Clear entry View general journal

Answer 1

All working forms part of the answer

Date	General Journal	Debit	Credit	Working
Jul-05	Inventory	$              128,800		[46 LCDs x $2800]
	Accounts Payable		$             128,800	[46 LCDs x $2800]
	(Inventory purchased on account)
Jul-08	Accounts Payable	$                16,800		[6 LCDs x $2800]
	Inventory		$               16,800	[6 LCDs x $2800]
	(Inventory returned that were defective)
Jul-13	Accounts Payable	$              112,000		[40 LCDs x $ 2800]
	Cash		$             109,760	[$112000 - $2240]
	Inventory		$                 2,240	[40 LCDS x $ 2800 x 2%]
	(Amount paid within discount term of 10 days)
Jul-28	Accounts receivables	$              132,000		[40 LCDs x $ 3300]
	Sales revenue		$             132,000	[40 LCDs x $ 3300]
	(Inventory sold)
Jul-28	Cost of Goods Sold	$              109,760		[40 LCDS x $ 2800 x 98%]
	Inventory		$             109,760	[Balance in Inventory account credited]
	(Cost of inventory sold adjusted)