Company A has the following transactions during August. August 6 Purchases 78 handheld game devices on account from Company B, for $240 each, terms 1/10, n/60.

August 7 Pays $440 to Company C for freight charges associated with the

August 6 purchase.

August 10 Returns to Company B eight game devices that were defective.

August 14 Pays the full amount due to Company B.

August 23 Sells 58 game devices purchased on August 6 for $260 each to customers on account. The total cost of the 58 game devices sold is $14,145.00.

Required:

1. Record the transactions of Company A, assuming the company uses a periodic inventory system.

2. Record the period-end adjusting entry to cost of goods sold on August