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During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer on account at a cost of $623.000. TAD returned $167,000
During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer on account at a cost of $623.000. TAD returned $167,000 of these vehicles to the manufacturer for credit on its account. TAD then sold $395,000 of the remaining vehicles at a cash selling price of $700,000. TAD's customers rarely return vehicles, so TAD records sales returns only as they occur. One customer did return a vehicle to TAD, which had been sold to the customer for $152,000. The vehicle was in perfect condition, so it was put back into TAD's inventory at TAD's cost of $91,000 Prepare journal entries to record these transactions, assuming TAD uses a perpetual inventory system. (if no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Credit Debit 623,000 A 1 Inventory Accounts Payable 623 000 B 2 Accounts Payable Inventory 167.000 167 000 3 700.000 Inventory Sales Revenue 700.000 D 4 Cost of Goods Sold 395 000 Inventory 395.000 E 5 Accounts Payable 152 000 152.000 F 6 91,000 Cost of Goods Sold Accounts Payable 91.000 Record the purchase of vehicles from a manufacturer on account for $623,000. B Record the return of vehicles by the manufacturer at $167,000. Record the sale of vehicles at $700,000. Record the cost of vehicles sold at $395,000. E Record the return of vehicles by the customer at $152,000. F Record the cost of vehicles returned at $91,000
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