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Assuming that CD City uses a perpetual inventory system, record the transactions. 1- Record purchase of CDs on account from Wholesale Music for $1,500, terms

Assuming that CD City uses a perpetual inventory system, record the transactions.

1- Record purchase of CDs on account from Wholesale Music for $1,500, terms 1/10, n/30.

2- Record payment of cash for freight charges related to the July 3 purchase from Wholesale Music, $110.

3- Record return of incorrectly ordered CDs to Wholesale Music and receive credit, $200.

4- Record payment to Wholesale Music in full.

5- Sell CDs to customers on account, $4,200, that had a cost of $2,200. Record the sale of inventory on account.

6- Sell CDs to customers on account, $4,200, that had a cost of $2,200. Record the cost of inventory sold.

7- Record receipt of full payment from customers related to the sale on July 12.

8- Record purchase of CDs on account from Music Supply for $2,300, terms 1/10, n/30.

9- Sell CDs to customers for cash, $3,400, that had a cost of $1,700. Record the sale of inventory for cash.

10- Sell CDs to customers for cash, $3,400, that had a cost of $1,700. Record the cost of inventory sold.

11- Record return of CDs to Music Supply and receive credit of $140.

12- Record payment of MusicSupply in full.

July 3 Purchase CDs on account from Wholesale Music for $1,500, 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, $4,200, that had a cost of $2,200.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $2,300, terms 1/10, n/30.
July 22 Sell CDs to customers for cash, $3,400, that had a cost of $1,700.
July 28 Return CDs to Music Supply and receive credit of $140.
July 30 Pay Music Supply in full.

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