Problem 7-7A Callahan Distributors, which uses the perpetual inventory system and makes all credit sales on terms of 1/10, n/30, completed the following transactions during July Using all the journals, posting, balancing the ledgers Jul. 2 Issued invoice no. 913 for sale on account to Ishikawa Inc., $24,600 Callahan's cost of this inventory 1/10, n/30. Purchased inventory $14,802. The invoice was dated July 3 Sold inventory for cash, $6,462 (cost, $2,880). Issued cheque no. 532 to purchase furniture for cash, $13,110. Collected interest revenue of $6,650. Issued invoice no. 914 for sale on account to Bell Ltd., $33,300 (cost, $13,860). Credit sales terms are 1/10, n/ Purchased inventory for cash, $6,858, issuing cheque Received cash from Ishikawa Inc. in full settlement of its account receiv- able from the sale on July 2. (3 $10,800. Credit sales terms are was 6 Total Accounts Receivable $2.976; total Accounts Payable $26,152 3 on credit terms of 3/10, n/60 from Nakkach Corp 5 8 q 10 no, 533. 12 13 Issued cheque July 3. (Round to the nearest dollar.) Purchased supplies end of month. The invoice was dated July 13. no. 534 to pay Nakkach Corp. the net amount owed from 13 on account from Manley Inc., $8,646. Terms were net Sold inventory on account to M. O. Brown, issuing invoice no. 915 for $3,990 (cost, $1,440). Credit sales terms are 1/10, n/30. 15 Issued credit memo to M. O. Brown for $3,990 for merchandise sent in error and returned by Brown. Also accounted for receipt of the inventory Issued invoice no. 916 for credit sale to Ishikawa Inc., $2,142 (cost, $762). 17 18 Credit sales terms are 1/10, n/30. 427 Chapter 7 Accounting Information Systems