Michael's Music is a store that buys and sells musical instruments and uses a perpetual inventory system. Transactions for the busin are shown below: Nov. 2 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $900 each, terms 1/10,n/60. 4 Made a cash sale of two keyboards for a total invoice price of $2,300. The cost of each keyboard was $700. 5 Received a credit from Western Acoustic Inc, for the return of an acoustic guitar, which was defective. The original invoice price was $400 and the guitar had been purchased on account. 7. One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer Was not satisfied with the instrument. 8 Purchased store supplies for cash from a stationery store. The price of the supplies is $100. 10 Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,700. Terms are 1/10, n/60. The trumpet had cost Michael's Music $1.420. 10. Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov. 2. 13 Purchased two saxophones from Yamaha Canada Inc on account. The invoice orice was $2.300 for each saxophone. 13 Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $2,300 for each saxophone. Terms are 1/10,n/30 16 Returned to Yamaha Canada Inc, one of the saxophones purchased on Nov, 13 , as it was the wrong model. Received a credit from Yamaha for the full purchase price. 20 Received a cheque for the appropriate amount from the Toronto Regional Band for the purchase of Nov, 10. 22 Paid balance owing to Yamaha Canada Inc. \begin{tabular}{l} Date Account Titles and Explanation \\ \hline Nov.2 Purchases \\ \hline \end{tabular} \begin{tabular}{|l|l} Debit & Credit \\ \hline 1800 & \\ \hline 2300 & 1800 \\ \hline & 2300 \end{tabular} Sales Revenwe. (To record cash sale) Now.5 \& Accountspryable Sales Revenue (To record cash sale.) Nov.5 Accounts payable Purchase Returns (To record cost of goods sold.) \begin{tabular}{|l|l|} Nov. 72 Sales Return and Allowance \\ \hline & Cash \\ \hline \end{tabular} Accounts Payable (To record cash refund for goods returned.) \begin{tabular}{l} Nov. 10 is Accounts Reccivable \\ Sales Revenue \\ \hline \end{tabular} 2700 2700 (To record cost of goods returned.) Nov.10 \& Accounts Payable Cash Now 13& Purchases Accounts Payable \begin{tabular}{l} Nov.13 Purchases \\ Accounts Payable \\ \hline \end{tabular} 5000 (To record sales on account.) \begin{tabular}{|l|l|} \hline Noviz 20 - Accounts payable \\ Purchase Returns \\ \hline \end{tabular} (To record cost of goods sold.) Cash Siles Oiscount Accounts Reccetvable Saler Discount Necounts Receivable (Payment on account )
