Checl At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750. June 18 Receive payment on account from customers, $3,100. June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,850, that had a cost of $3,150. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June Pay Sound Unlimited in full. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of June. CIRCUIT COUNTRY Multiple-step Income Statement (partial) For the month of June Net sales Cost of goods sold: Beginning inventory Less: Purchase returns Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Cost of goods available for sale Less: Ending inventory Cost of goods sold I Gross profit Checl At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750. June 18 Receive payment on account from customers, $3,100. June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,850, that had a cost of $3,150. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June Pay Sound Unlimited in full. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of June. CIRCUIT COUNTRY Multiple-step Income Statement (partial) For the month of June Net sales Cost of goods sold: Beginning inventory Less: Purchase returns Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Cost of goods available for sale Less: Ending inventory Cost of goods sold I Gross profit
