Question
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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