The following information was presented by the bookkeeper for IAluminium Parts for the month of July 2019. IAluminium Parts uses perpetual inventory system.

Jul 8	Purchased $288,000 of merchandise on account from Prime Wholesalers, terms 2/10, net 30
Jul 10	A portion of the merchandise purchased from Prime Wholesalers was defective. IAluminium returned $8,000 worth of inventory to the supplier.
Jul 12	Sold $260,000, of merchandise to Dhino on account, terms 2/10, net 30; cost of goods sold was $104,000 for this transaction.
Jul 14	Dhino returned $26,000 of goods purchased on account. The cost of goods sold for the returned merchandise is $15,600.
Jul 17	Purchased goods from Raptor Trading Parts on account for $18,000 with terms of 3/10, net 30.
Jul 18	Some of the merchandise purchased from Raptor Trading Parts was slightly damaged. IAluminium decided to keep the merchandise, but will receive a $2,000 allowance.
Jul 20	Received payment from Dhino.
Jul 24	Paid the amount owing to Raptor Trading Parts.

Required

Use the Financial Statement templates to complete the question.

Answer the following multiple choice questions by selecting the correct answer from the dropdown boxes.

What would be the correct journal entry for the transaction on July 10? AnswerDr. Accounts Payable $8,000; Cr. Merchandise Inventory $8,000Dr. Cash $8,000; Cr. Accounts Payable $8,000Dr. Cash $8,000; Cr. Merchandise Inventory $8,000Dr. Merchandise Inventory $8,000; Cr. Accounts Payable $8,000

Which account(s) would be credited and by how much for the transaction on July 12? AnswerAccounts Receivable $260,000Sales Revenue $260,000Merchandise Inventory $104,000Both b & c

What would be the correct journal entry for the transaction on July 17? AnswerDr. Accounts Payable $18,000; Cr. Merchandise Inventory $18,000Dr. Merchandise Inventory $18,000; Cr. Accounts Payable $18,000Dr. Merchandise Inventory $18,000; Cr. Cash $18,000Dr. Merchandise Inventory $16,000; Cr. Accounts Payable $16,000

What would be the sales discount for the transaction on July 20? Answer$468$520$5,200$4,680

How much would be paid out in cash on July 24? Answer$16,000$2,000$15,520$18,000