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On January 1, 2020, the CD Warehouse began operations with a cash balance of $67,328. During the year, the company purchased 14,500 CDs on credit
On January 1, 2020, the CD Warehouse began operations with a cash balance of $67,328. During the year, the company purchased 14,500 CDs on credit at a unit cost of $12. Payment was made soon enough to obtain a 2% purchase discount. During the year the company sold 3,200 CDs at a unit sales price of $25. 1,000 of CD sales were sold to customers who paid early to get the 3% discount. Assuming a perpetual inventory system is used, show the journal entries for these transactions and the T-accounts for both cash and inventory.
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