Answer:
August 6
DR Inventory <u>$18,720</u>
CR Accounts Payable <u>$18,720</u>
<em>(To record purchase of goods for sale)</em>
= 76 devices * $240
= $18,720
August 7
DR Inventory <u>$440</u>
CR Cash <u>$440</u>
<em>(To record shipping costs of Inventory)</em>
August 10
DR Accounts Payable <u>$1,920</u>
CR Inventory <u>$1,920</u>
<em>(To record Purchase returns)</em>
August 14
DR Accounts Payable <u>$16,800</u>
CR Inventory <u>$168</u>
CR Cash <u>$16,632</u>
<em>(To record payment of purchases) </em>
Working
Accounts Payable = Purchases - Returns
= 18,720 - 1,920
= $16,800
Inventory
Goods were purchased terms 1/10 meaning a 1% discount is goods paid for in 10 days.
= 1% * 16,800
= $168
August 23
DR Accounts Receivable <u>$15,080</u>
CR Sales Revenue <u>$15,080</u>
<em>(To record sales of goods on account)</em>
Sales Revenue = 58 devices * 260
= $15,080
August 23
DR Cost of Goods Sold <u>$14,145.37</u>
CR Inventory <u>$14,145.37</u>
<em>(To record cost of Goods sold) </em>
