Answer:
Gross profit $4500
Explanation:
July-3 Dr Inventory 2300
Cr Accounts payable 2300
(To record purchase of cds on account)
July-4 Dr Inventory 110
Cr Cash 110
( To record payment of freight charges associated with purchase)
July-9 Dr Accounts payable 200
Cr Inventory 200
(To record purchase return)
July-11 Dr Accounts payable (2300-200) 2100
Cr Cash 2100
(To record payment in full of inventory purchase)
July-12.a) Dr Cost of goods sold 3000
Cr Inventory 3000
b) Dr Account receivable 5800
Cr Sales revenue 5800
(To record sales of inventory)
July-15 Dr Cash 5800
Cr Account receivable 5800
( To record receipt of sales)
July-18 Dr Inventory 3100
Cr Accounts payable 3100
(To record purchase of inventory)
July-22.a) Dr Cost of goods sold 2500
Cr inventory 2500
b) Dr Account receivable 4200
Cr sales revenue 4200
(To record sales of inventory)
July-28 Dr Accounts payable 300
Cr Inventory 300
(To record purchase return)
July-30 Dr Accounts payable 3100
Cr Cash 3100
(To record payment in full of purchases made).
Partial Income Statement
$
Sales (5800+4200) = 10000
less: Cost of goods sold(3000+2500) = (<u>5500</u>)
Gross profit 4500
