Ds unlimited has the following transactions during august. august 6 purchases 66 handheld game devices on account from gamegirl, inc., for $180 each, terms 2/10, n/60. august 7 pays $380 to sure shipping for freight charges associated with the august 6 purchase. august 10 returns to gamegirl six game devices that were defective. august 14 pays the full amount due to gamegirl. august 23 sells 46 game devices purchased on august 6 for $200 each to customers on account. the total cost of the 46 game devices sold is $8,406.00.

Inventory    11,880 debit

         A/P                          11,880 credit

--to record purchase from GameGirl --

Inventory        360 debit

        Cash                           360 credit

--to record the freigh-in--

A/P                 1,080 debit

     Inventory                  1,080 credit

--to record returned goods to GameGirl--

A/P                    10,800 debit

       Inventory                      216 credit

       Cash                         10,584 credit

--to record payment to GameGirl--

accounts receivables    9,200 debit

              sales revenues          9,200 credit

COGS               8,406 debit

                                        8,406 credit

--to record sale and subsequent cost of the sale--

Explanation:

total amount of hte purchase in dollars:

66 game devices x 180 dollars each = 11,880

six returned devices:

6 x 180 = 1,080

invoice balance: 11,880 - 1,080 = 10,800

discount because payment within the first ten days:

10,800 x 2% = 216

final value: 10,800 - 216 = 10,584

sale of 46 devices at 200 = 9,200

a.