Refer to the transactions of Circuit Country in P6-3B.
In P3
June 2 Purchase radios on account from Radio World for $2,200, terms 2/15, n/45.
June 4 Pay freight charges related to the June 2 purchase from Radio World, $300.
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, $4,000, that had a cost of $2,700.
June 18 Receive payment on account from customers, $3,000.
June 20 Purchase radios on account from Sound Unlimited for $3,300, terms 3/10, n/30.
June 23 Sell radios to customers for cash, $4,800, that had a cost of $3,100.
June 26 Return damaged radios to Sound Unlimited and receive credit of $400.
June 28 Pay Sound Unlimited in full.
Required:
1. Assuming that Circuit Country uses a periodic inventory system, record the transactions.
2. Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $1,860.
3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.