Answer:
Jul-05 Dr Inventory $118,800
Cr Accounts Payable $118,800
Jul-08 Dr Accounts 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-28 Dr 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 Dr Inventory $118,800
Cr Accounts Payable $118,800
(44 LCDs x $2700)
(Being to record inventory purchased on account)
Jul-08 Dr Accounts 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-28 Dr Cost of Goods Sold $108,864
(42 LCDS x $ 2700 x 96%)
Cr Inventory $108,864
(Being to record Cost of inventory sold adjusted)
