1 M6-7 (Algo) Recording Journal Entries for Purchases, Purchase Returns, Sales, and Sales Returns Using a Perpetual Inventory System [LO 6-3, 6-4] 1.66 points eBook Print During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer on account at a cost of $619,000. TAD returned $163,000 of these vehicles to the manufacturer for credit on its account. TAD then sold $391,000 of the remaining vehicles for cash at a selling price of $696,000. TAD's customers rarely return vehicles, so TAD records sales returns only as they occur. One customer did return a vehicle to TAD for cash, which had been sold to the customer for $148,000. The vehicle was in perfect condition, so it was put back into TAD's inventory at TAD's cost of $87,000. Prepare journal entries to record these transactions, assuming TAD uses a perpetual inventory system. (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 2 Note: Enter debits before credits. Transaction 3 Record entry 4 Record the purchase of vehicles from a manufacturer on account for $619,000. 5 General Journal Accumulated Depreciation-Vehicles Accounts Payable Clear entry 6 Debit 619,000 Credit 619,000 View general journal A

M6-7 (Algo) Recording Journal Entries for Purchases, Purchase Returns, Sales, and Sales Returns Using a Perpetual Inventory System [LO 6-3, 6-4] TAD ieturned $163,000 of these vehicles so the marufacturer for credit on its account TAD then sold $391,000 of the remaining vehicles for cash at a seling price of $696.000. TAD's customers rarely return vehicles, 10 TAD records 5oles retiuns only as they occuit One customer did retum o veticle to TAD for cash, which hed been sold to the custorier for $148,000. The vehicle was in. perfect condition, so t wos put beck into TAD' inventory at TAD's cont of 387,000 . Prepore joumat entries to cecotd these transoctsons, ostuming TAD uses o perpetual inventory system af no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Recerd the purchase of vehicles from a manulacturer on account for $629,000