Question

entries

At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions oct month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, 1/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $270. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,700, that had a cost of $2,550. June 18 Receive payment on account from customers, $2,700. June 20 Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,650, that had a cost of $2,950. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June 28 Pay Sound Unlimited in full. Problem 6-3B Part 1 Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions. (If no entry is required transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 12 > Record purchase of radios on account from Radio World for $2,050, terms 2/15, 1/45. Note: Enter debits before credits Date General Journal Debit Credit June 0 Record entry Clear entry View general journal

Answer 1

Journal entries :

1. DR. Purchases $2,050

CR. Radio World $2,050

(Purchase of radios on account.)

2. DR. Freight-in    $270

CR. Cash $270

(Freight charges paid.)

3. DR. Radio World $400

CR. Purchase Returns $400

(Defective radios returned and credit received.)

4. DR. Radio World $1,650

CR. Cash $1,617

CR. Purchase Discount $33

(Payment made to Radio World.)

5. DR. Debtors $3,700

CR. Sales $3,700

(Sales made on account.)

6. Technical glitch in software. Question asked twice.

7. DR. Cash $2,700

CR. Deebtors $2,700

(Payment received from customers.)

8. DR. Purchases $3,150

CR. Sound Unlimited $3,150

(Purchase of radios on account.)

9. DR. Cash $4,650

CR. Sales $4,650

(Sales made in cash.)

10.Technical glitch in software. Question asked twice.

11. DR. Sound Unlimited $500

CR. Purchase Returns       $500

(Defective radios returned and received a credit.)

12. DR. Sound Unlimited $2,650

CR. Cash $2597

CR. Purchase Discount $53

(Payment made to Sound Unlimited.)