The Digit-All Company sells a product called ReCord for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of ReCords and transactions during July 2020 were as follows:

Required

Journalize the July transactions in the sales journal and purchases journal. Use page 1 for each journal.

Assume all sales and purchases are on credit; terms n/30. Under the assumption that the company keeps its records on a weighted average basis, you will need to enter the beginning balances and post each transaction on an inventory subledger record like the one illustrated in Exhibit AII.6 in order to determine cost of goods sold.