Sundance Systems has the following transactions during July. July 5 Purchases 50

Question

Sundance Systems has the following transactions during July. July 5 Purchases 50 LCD televisions on account from Red River Supplies for $3,000 each, terms 2/10, n/30. July 8 Returns to Red River four televisions that had defective sound. July 13 Pays the full amount due to Red River. July 28 Sells remaining 46 televisions from July 5 for $3,500 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.)

Explanation / Answer

Jul-05 Inventory 150000 =50*3000        Accounts payable 150000 Jul-08 Accounts payable 12000 =4*3000        Inventory 12000 Jul-13 Accounts payable 138000        Inventory 2760        Cash 135240 Jul-28 Accounts Receivable 161000          Sales revenue 161000 Jul-28 Cost of goods sold 135240        Inventory 135240

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