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At the beginning of June, Circuit Country has a balance in inventory of $2,450. The following transactions occur during the month of June. June 2
At the beginning of June, Circuit Country has a balance in inventory of $2,450. The following transactions occur during the month of June.
June | 2 | Purchase radios on account from Radio World for $2,150, terms 2/15, n/45. | ||
June | 4 | Pay cash for freight charges related to the June 2 purchase from Radio World, $290. | ||
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, $3,900, that had a cost of $2,650. | ||
June | 18 | Receive payment on account from customers, $2,900. | ||
June | 20 | Purchase radios on account from Sound Unlimited for $3,250, terms 2/10, n/30. | ||
June | 23 | Sell radios to customers for cash, $4,750, that had a cost of $3,050. | ||
June | 26 | Return damaged radios to Sound Unlimited and receive credit of $300. | ||
June | 28 | Pay Sound Unlimited in full. |
2. Prepare the top section of the multiple-step income statement through gross profit for the month of June. (Net Sales, Cost of Goods Sold, and Gross Profit)
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