Sundance Systems has the following transactions during July. July 5 Purchases 24 LCD televisions on account from Red River Supplies for $1,700 each, terms 1/10, n/30. July 8 Returns to Red River two televisions that had defective sound. July 13 Pays the full amount due to Red River. July 28 Sells remaining 22 televisions from July 5 for $2,200 each on account.

1. Record the transactions of Sundance Systems, assuming the company uses a periodic inventory system.

2. Record the period-end adjustment to cost of goods sold on July 31, assuming the company has no beginning or ending inventory.