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At the beginning of July,. CD City has a balance in inventory of $3,050. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,950, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $100. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,100, that had a cost of $2,650. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,750, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. July 28 Return CDs to Music Supply and receive credit of $230. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City 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 July. Complete this question by entering your answers in the tabs below. Required 1. Required 2 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.) View transaction list Journal entry worksheet < 1 5 Note: Enter debits before credits Date 6 7 8 General Journal 9 10 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. Record the cost of inventory sold. 11 Debit 12 Credit >

At the beginning of July,. CD City has a balance in inventory of $3,050. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,950, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $100. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,100, that had a cost of $2,650. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,750, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. July 28 Return CDs to Music Supply and receive credit of $230. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City 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 July. Complete this question by entering your answers in the tabs below. Required 1. Required 2 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.) View transaction list Journal entry worksheet < 1 5 Note: Enter debits before credits Date 6 7 8 General Journal 9 10 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. Record the cost of inventory sold. 11 Debit 12 Credit >

FINANCIAL ACCOUNTING
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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At the beginning of July,. CD City has a balance in inventory of $3,050. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,950, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $100. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,100, that had a cost of $2,650. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,750, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. July 28 Return CDs to Music Supply and receive credit of $230. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City 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 July. Complete this question by entering your answers in the tabs below. Required 1. Required 2 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.) View transaction list Journal entry worksheet < 1 5 Note: Enter debits before credits Date 6 7 8 General Journal 9 10 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. Record the cost of inventory sold. 11 Debit 12 Credit >
Transcribed Image Text:At the beginning of July,. CD City has a balance in inventory of $3,050. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $1,950, terms 2/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $100. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,100, that had a cost of $2,650. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,750, terms 2/10, n/30. July 22 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. July 28 Return CDs to Music Supply and receive credit of $230. July 30 Pay Music Supply in full. Required: 1. Assuming that CD City 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 July. Complete this question by entering your answers in the tabs below. Required 1. Required 2 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.) View transaction list Journal entry worksheet < 1 5 Note: Enter debits before credits Date 6 7 8 General Journal 9 10 Sell CDs to customers for cash, $3,850, that had a cost of $2,150. Record the cost of inventory sold. 11 Debit 12 Credit >
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