Question

Problem 6-3A Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) 

[The following information applies to the questions displayed below] 

At the beginning of July. CD City has a balance in inventory of $3,300. The following transactions occur during the month of July. 

July 3 Purchase CDs on account from Wholesale Music for $2,200, terms 1/10, n/38. 

July 4 Pay cash for freight charges related to the July ) purchase from Wholesale Music, $120. 

July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, see. 

July 11 Pay Wholesale Music in full July 12 Sell CDs to customers on account, $5,6ee, that had a cost of $2,900. 

July 15 Receive full payment from customers related to the sale on July 12. 

July 18 Purchase CDs on account from Music Supply for $3,000, terms 1/10, n/30. 

July 22 Sell CDs to customers for cash, $4,100, that had a cost of $2,4ee. 

July 28 Return CDs to Music Supply and receive credit of $28e. 

July 38 Pay Music Supply in full. 

Problem 6-3A Part 1 

Required:

 1. Assuming that CD City uses a perpetual inventory system, record select "No Journal Entry Required in the first account field.)

Answer 1

(17 journal entry: Debir credit Dale 3 - 3414 Account Name Inventory TO ACCounts payable 2200 $ 2200 $ 120 Inventorul To cash $ 12o 200 Accounts TO payable Inventory $ 200 Accounts payable (2200- 200) $2000 TO Inventory (2000X16) TO cash 1980 12. Account Receivable to sales revenue & 5600 $ 5600 B 2900 Cost Of good sold TO Inventory 2900 15. cash TO 5600 & 5600 Accounts Receivable $ 3000 Inventory TO Accounts payable 3 3000 $ cash to sales Revenue 4100 $ 4100

Dale Debit credit Account Name Icostof good sold 22 2400 TO Inventory २400 Accounts payable 1280 TO Inventory 30. Accounts payable (3000-280) $2720 To cash $ 2720