Answered

Sundance systems has the following transactions during July.
July 5- Purchases 58 LCD televisions on account from Red River Supplies for $3,400 each, terms 2/10. n/30.
July 8- Returns to Red RIver two televisions that had detective sound.
July 13- Pays the full amount due to Red River.
July 28- Sells remaining 56 televisions purchased on July 5 fpr $3,900 each on account.Record the transactions of Sundance systems, assuming the company uses a perpetual inventory system.

Answer :

tutorAnne

Answer: Please see below for answers

Explanation:

Journal to record Purchase of goods.

Date                General Journal                  Debit      Credit

5TH July  Inventory ( 58 x 3400)     $197, 200

               Accounts Payable                                     $197,200

journal to record goods returned

Date                General Journal                  Debit           Credit

8TH July   Accounts Payable (2 x 3400)     $6,800

               inventory                                                        $  6,800

journal to record payment made to supplier

Date                General Journal                              Debit           Credit

13TH July Accounts Payable (197,200-6,800)     $190,400

               inventory  ( 190,400 x2%)                                    $3808

              Cash( 190,400 - 3,808)                                      $186,592

From the question, the conditions for payment states 2/10 and n/30 meaning that the company will get 2% discount if they pay for products in 10 days of payment. the company paid on 13th and therefore will get a discount which is $3,808.

journal to record sale of goods

Date                General Journal                              Debit           Credit

28TH July Accounts receivable(56x 3900)     $218,400

                  Sales revenue                                               $218,400  

Journal to record cost of good sold

Date                General Journal                Debit           Credit

28TH July  cost of good sold               $186,592

               inventory                                                         $186,592      

             

             

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