At the beginning of June, Circuit Country has a balance in inventory of $2, 300. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,000,terms 1/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $260. June 8 Return defective radios to Radio World and receive credit, $300. June 10 Pay RadioWorld in full. June 11 Sell radios to customers on account, $3,600, that had a cost of $2,500. June 18 Receive payment on account from customers, $2,600. June 20 Purchase radios on account fromSound Unlimited for $3, 100, terms 3/10, n/30. June 23 Sell radios to customers for cash, $4,600, that had a cost of $2,900. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full. Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the multiple-step incomestatement through gross profit for the month of June.

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Description: At the beginning of June, Circuit Country has a balance in inventory of $2, 300. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,000,terms 1/15, n/45. June 4 Pay cash for freight c

The perpetual inventory system records the cost of goods sold when sales transactions are incurred.…

Business

Accounting

300. June 28 Pay Sound Unlimited in full. Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the multiple-step income statement through gross profit for the month of June.

300. June 28 Pay Sound Unlimited in full. Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record the transactions. 2. Prepare the top section of the multiple-step income statement through gross profit for the month of June.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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