Question

Required information [The following information applies to the questions displayed below.] At the beginning of June, Circuit Country has a balance in inventory of $2,250. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $1,950, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $250. June 8 Return defective radios to Radio World and receive credit, $200. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,500, that had a cost of $2,450. June 18 Receive payment on account from customers, $2,500. June 20 Purchase radios on account from Sound Unlimited for $3,050, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,550, that had a cost of $2,850. June 26 Return damaged radios to Sound Unlimited and receive credit of $400. June 28 Pay Sound Unlimited in full. 2. Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $1,512. (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 < 1 > Record period-end adjustment. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Record entry Clear entry View general journal

Answer 1

Beg Inventory	$              2,250
Purchase	$              1,950
Freight In	$                 250
Return	$                (200)
Discount	$                  (35)
Sale	$            (2,450)
Purchase	$              3,050
Sale	$            (2,850)
Return	$                (400)
Discount	$                  (53)
End Bal	$              1,512

2.
Since ending inventory as per records and physical count is same, no entry for adjustment is required.

No Journal Entry Required
Assuming Perpetual Inventory System is followed.

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