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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 $621,000. TAD returned $165,000
During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer on account at a cost of $621,000. TAD returned $165,000 of these vehicles to the manufacturer for credit on its account. TAD then sold $393,000 of the remaining vehicles at a selling price of $698,000. 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 $150,000. The vehicle was in perfect condition, so it was put back into TAD's inventory at TAD's cost of $89,000. 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.) A Record the purchase of vehicles from a manufacturer on account for $621,000. B Record the return of vehicles by the manufacturer at $ 165,000. C Record the sale of vehicles at $698,000. D Record the cost of vehicles sold at $393,000. E Record the return of vehicles by the customer at $150,000. F Record the cost of vehicles returned at $89,000. Transaction General Journal Debit Credit
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