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.

Jul-05 DrInventory$118,800

Cr Accounts Payable $118,800

Jul-08 DrAccounts Payable$5,400

Cr Inventory $ 5,400

Jul-13 Dr Accounts Payable$ 113,400

Cr Cash $108,864

Cr Inventory $4,536

Jul-28 Dr Accounts receivables$ 134,400

Cr Sales revenue $ 134,400

Jul-28Dr Cost of Goods Sold$108,864

Cr Inventory $108,864

Explanation:

Preparation of the journal entry to Record the transactions of Sundance systems, assuming the company uses a perpetual inventory system

Jul-05 DrInventory$118,800

Cr Accounts Payable $118,800

(44 LCDs x $2700)

(Being to record inventory purchased on account)

Jul-08 DrAccounts Payable$5,400

Cr 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-28Dr Cost of Goods Sold$108,864

(42 LCDS x $ 2700 x 96%)

Cr Inventory $108,864

(Being to record Cost of inventory sold adjusted)

hi noah!

the first time you break a rule, you get a warning.

if you continue to break rules you get kicked out for a certain amount of time.

so, to answer your question 1.

hope this buddy!

- courtney