A Record the purchase of vehicles from a manufacturer on acc

A.. Record the purchase of vehicles from a manufacturer on account for $608,000.

B. Record the return of vehicles by the manufacturer at $152,000.

C. Record the sale of vehicles at $685,000.

D. Record the cost of vehicles sold at $380,000.

E. Record the return of vehicles by the customer at $137,000.

F. Record the cost of vehicles returned at $76,000.

During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer on account at a cost of $608,000. TAD returned $152,000 of these vehicles to the manufacturer for credit on its account. TAD then sold $380,000 of the remaining vehicles at a selling price of $685,000. TAD\'s customers rarely return vehicles, so TAD records sales returns only as they occur. One customer did return a vehicle to TAD, which had been sold to the customer for $137,000. The vehicle was in perfect condition, so it was put back into TAD\'s inventory at TAD\'s cost of $76,000. Prepare journal entries to record these transactions, assuming TAD uses a perpetual inventory system. (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 Record the purchase of vehicles from a manufacturer on account for $608,000. Note: Enter debits before credits. Transaction General Journal Debit Credit

Solution

Answer

Journal Entry no

Accounts title

Debit

Credit

A

Inventory

$            6,08,000.00

Accounts Payable

$             6,08,000.00

(inventory purchased)

B

Accounts Payable

$            1,52,000.00

Inventory

$             1,52,000.00

(inventory returned)

C

Accounts receivables

$            6,85,000.00

Sales revenue

$             6,85,000.00

(sales made on account)

D

Cost of Goods Sold

$            3,80,000.00

Inventory

$             3,80,000.00

(inventory adjusted by cost of goods sold)

E

Sales return

$            1,37,000.00

Accounts receivables

$             1,37,000.00

(returned by customer)

F

Inventory

$                76,000.00

Cost of Goods Sold

$                76,000.00

(cost of inventory returned back)

Journal Entry no	Accounts title	Debit	Credit
A	Inventory	$            6,08,000.00
	Accounts Payable		$             6,08,000.00
	(inventory purchased)
B	Accounts Payable	$            1,52,000.00
	Inventory		$             1,52,000.00
	(inventory returned)
C	Accounts receivables	$            6,85,000.00
	Sales revenue		$             6,85,000.00
	(sales made on account)
D	Cost of Goods Sold	$            3,80,000.00
	Inventory		$             3,80,000.00
	(inventory adjusted by cost of goods sold)
E	Sales return	$            1,37,000.00
	Accounts receivables		$             1,37,000.00
	(returned by customer)
F	Inventory	$                76,000.00
	Cost of Goods Sold		$                76,000.00
	(cost of inventory returned back)