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.)

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.

Transcribed Image Text:

View transaction list Journal entry worksheet A B C D E F Record the purchase of vehicles from a manufacturer on account for $608,000. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View transaction list Journal entry worksheet A B C D E F Record the purchase of vehicles from a manufacturer on account for $608,000. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit

Answer rating: 100% (QA)

All journal entries required are as follow Journal Entr... View the full answer