Refer to the transactions in E6-8.
In E8
July 5 Purchases 20 laptop computers on account from Red River Supplies for $1,500 each, terms 3/10, n/30.
July 8 Returns to Red River two laptops that had defective hard drives.
July 13 Pays the full amount due to Red River.
July 28 Sells remaining 18 laptops purchased on July 5 for $2,000 each on account.
Required:
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.