Question: Refer to the transactions of Circuit Country in P6-3B.
Required: 1. Assuming that Circuit Country uses a periodic inventory system, record the transactions.
2. Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $1,860.
3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.
P6-3B: At the beginning of June, Circuit Country has a balance in inventory of $2,500. The following transactions occur during the month of June.
June 2 Purchase radios on account from Radio World for $2,200, terms 2/15, n/45. June 4 Pay freight charges related to the
June 2 purchase from Radio World, $300.
June 8 Return defective radios to Radio World and receive credit, $200.
June 10 Pay Radio World in full.
June 11 Sell radios to customers on account, $4,000, that had a cost of $2,700.
June 18 Receive payment on account from customers, $3,000.
June 20 Purchase radios on account from Sound Unlimited for $3,300, terms 3/10, n/30.
June 23 Sell radios to customers for cash, $4,800, that had a cost of $3,100.
June 26 Return damaged radios to Sound Unlimited and receive credit of $400.
June 28 Pay Sound Unlimited in full.
Required: 1. Assuming that Circuit Country uses a perpetual inventory system, record transactions using the following account titles: Cash, Accounts Receivable, Inventory, Accounts Payable, Sales, and Cost of Goods Sold.
2. Prepare the top section of the multiple-step income statement through gross profit for the month of June.