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At the beginning of July, CD City has a balance in inventory of $2,900. The following transactions occur during the month of July.
July 3 Purchase CDs on account from Wholesale Music for $1,800, terms 2/10, n/30.
July 4 Pay freight charges related to the July 3 purchase from Wholesale Music, $100.
July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $300.
July 11 Pay Wholesale Music in full.
July 12 Sell CDs to customers on account, $4,800, that had a cost of $2,500.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $2,600, terms 1/10, n/30.
July 22 Sell CDs to customers for cash, $3,700, that had a cost of $2,000.
July 28 Return CDs to Music Supply and receive credit of $200.
July 30 Pay Music Supply in full.
Problem 6-3A Part 1
Required:
1.
Assuming that CD City uses a perpetual inventory system, record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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