Refer to the transactions in E6–10.
In E6–10, Sundance Systems has the following transactions during July.
July 5 Purchases 40 LCD televisions on account from Red River Supplies for $2,500 each, terms 3/10, n/30.
July 8 Returns to Red River two televisions that had defective sound.
July 13 Pays the full amount due to Red River.
July 28 Sells remaining 38 televisions from July 5 for $3,000 each on account.
1. Record the transactions of Sundance Systems, assuming the company uses a periodic inventory system.
2. Record the period-end adjustment to cost of goods sold on July 31, assuming the company has no beginning inventory.