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Sundance Systems has the following transactions during July.
Sundance Systems has the following transactions during July. July 5 Purchases 44 LCD televisions on account from Red River Supplies for $2,700 each, terms 4/10, 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 42 televisions from July 5 for $3,200 each on account.
Record the transactions of Sundance systems, assuming the company uses a perpetual inventory system.
Answer:Jul-05 Dr Inventory $118,800Cr Accounts Payable $118,800Jul-08 Dr Accounts Payable $5,400Cr Inventory $ 5,400Jul-13 Dr Accounts Payable $ 113,400Cr Cash $108,864Cr Inventory $4,536Jul-28 Dr Accounts receivables $ 134,400Cr Sales revenue $ 134,400Jul-28 Dr Cost of Goods Sold $108,864Cr Inventory $108,864Explanation:Preparation of the journal entry to Record the transactions of Sundance systems, assuming the company uses a perpetual inventory systemJul-05 Dr Inventory $118,800Cr Accounts Payable $118,800(44 LCDs x $2700)(Being to record inventory purchased on account)Jul-08 Dr Accounts Payable $5,400Cr Inventory $ 5,400(2 LCDs x $2700)(Being to record inventory returned that were defective)Jul-13 Dr Accounts Payable $ 113,400(42 LCDs x $ 2700)Cr Cash $108,864($ 113,400-$4,536)Cr Inventory $ 4,536(42 LCDS x $ 2700 x 4%)(Being to record Amount paid within discount term of 10 days)Jul-28 Dr Accounts receivables $ 134,400[42 LCDs x $ 3200]Cr Sales revenue $ 134,400(Being to record Inventory sold)Jul-28 Dr Cost of Goods Sold $108,864(42 LCDS x $ 2700 x 96%)Cr Inventory $108,864(Being to record Cost of inventory sold adjusted)...