At the beginning of July, CD City has a balance in inventory of $2,450. The following transactions occur during the month of July. Purchase CDs on account from Wholesale Music for $1,350, terms 2/10, n/30. July 3 July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $3,900, that had a cost of $2,050. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,150, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,250, that had a cost of $1,550. July 28 Return CDs to Music Supply and receive credit of $110. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the multiple-step income statement through gross profit for the month of July.
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- nces At the beginning of July, CD City has a balance in Inventory of $2,650. The following transactions occur during the month of July. July 3 Purchase CDs on account from wholesale Music for $1,550, terms 2/10, 1/30. July 4 Pay cash for freight charges related to the July 3 purchase from wholesale Music, $100. July 9 Return incorrectly ordered CDs to wholesale Music and receive credit, $300. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $4,300, that had a cost of $2,250. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,350, terms 2/10, 1/30. July 22 sell CDs to customers for cash, $3,450, that had a cost of $1,750. July 28 Return CDs to Husic Supply and receive credit of $150. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City uses a perpetual Inventory system, record the transactions. 2. Prepare the top section of the multiple-step income statement…At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/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. Required:1. Assuming that Circuit Country uses a periodic inventory system, record the…At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July.July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30.July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200.July 11 Pay Wholesale Music in full.July 12 Sell CDs to customers on account, $5,800, that had a cost of $3,000.July 15 Receive full payment from customers related to the sale on July 12.July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30.July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500.July 28 Return CDs to Music Supply and receive credit of $300.July 30 Pay Music Supply in full.Required:1. Assuming that CD City uses a perpetual inventory system, record the transactions.2. Prepare the top section of the multiple-step income statement through gross profit…
- At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/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. 3. Prepare the top section of the multiple-step income statement through gross profit for the…At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/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. 3. Prepare the top section of the multiple-step income statement through gross profit for the…At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/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. 2. Record the month-end adjustment to inventory, assuming that a final count reveals ending…
- At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/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. 2. Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory…At the beginning of June, Circuit Country has a balance in inventory of $2, 300. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,000, terms 1/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $260. June 8 Return defective radios to Radio World and receive credit, $300. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,600, that had a cost of $2,500. June 18 Receive payment on account from customers, $2,600. June 20 Purchase radios on account from Sound Unlimited for $3, 100, terms 3/10, n/30. June 23 Sell radios to customers for cash, $4,600, that had a cost of $2,900. June 26 Return damaged radios to Sound Unlimited and receive credit of $ 300. June 28 Pay Sound Unlimited in full. Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the multiple-step income…At the beginning of June, Circuit Country has a balance in inventory of $2,650. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,350, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $330. June 8 Return defective radios to Radio World and receive credit, $300. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,300, that had a cost of $2,850. June 18 Receive payment on account from customers, $3,300. June 20 Purchase radios on account from Sound Unlimited for $3,450, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,950, that had a cost of $3,250. June 26 Return damaged radios to Sound Unlimited and receive credit of $400. June 28 Pay Sound Unlimited in full.
- At the beginning of June, Circuit Country has a balance in inventory of $3,000. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,700, terms 1/15, n/45.June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $400.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, $5,000, that had a cost of $3,200.June 18 Receive payment on account from customers, $4,000.June 20 Purchase radios on account from Sound Unlimited for $3,800, terms 3/10, n/30.June 23 Sell radios to customers for cash, $5,300, that had a cost of $3,600.June 26 Return damaged radios to Sound Unlimited and receive credit of $500.June 28 Pay Sound Unlimited in full.Required:1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions.2. Prepare the top section of the multiple-step income statement through…User Rancho Furniture completed the following transactions relating to the purchase of merchandise during August, the first month of operation. It is the policy of the company to record all purchase invoices at the net amount and to pay invoices within the discount period. Aug.1 Purchased merchandise from Carolina Corporation, invoice price, $21,000; terms 2/10, n/30. Aug.8 Purchased merchandise from Thomas Company, $36,000; terms 2/10, n/30. Aug. 8 Merchandise with an invoice price of $3,000 purchased from Carolina Corporation on August 1 was found to be defective. It was returned to the supplier accompanied by debit memorandum no. 118. Aug. 18 Paid Thomas Company's invoice of August 8, less cash discount. Aug. 25 Purchased merchandise from Shenren Company, $22, 800; terms 2/10, n/30. Aug. 30 Paid Carolina Corporation's invoice of August 1, taking into consideration the return of defective goods on August 8. Assume that the inventory of merchandise on August 1 was $79, 400; on August…On June 5, Staley Electronics purchases 200 units of inventory on account for $19 each, with terms 2/10, n/30. Staley pays for the inventory on June 12. Required: 1. Record transactions for the purchase of inventory and payment on account using a perpetual system. 2. Now assume payment is made on June 22. Record the payment on account.