Brief Exercise 8-2 Record the following transactions on the books of Ceradyne Corp., which uses a perpetual inventory system. On July 1, Ceradyne Corp. sold merchandise on account to Cambridge Inc. for $60,200, terms 2/10, n/30. The cost of the merchandise sold was $34,700. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit July 1 Accounts Receivable 60200 Sales Revence 60200 (To record credit sale) July 1 Cost of Goods Sold 34700 Merchandise Invenory 34700 (To record cost of merchandise sold) SHOW LIST OF ACCOUNTS LINK TO TEXT - TL On July 8, Cambridge returned merchandise worth $7,000 to Ceradyne. Its original cost was $4,110. The merchandise was restored to inventory. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit July 8 Sales Returns and Allowances 7000 Accounts Receivable 7000 (To record sales return) July 8 Merchandise Inventory 4110 Cost of Goods Sold 4110 (To record cost of merchandise returned) SHOW LIST OF ACCOUNTS LINK TO TEXT On July 9, Cambridge paid for the merchandise. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit July 9 SHOW LIST OF ACCOUNTS LINK TO TEXT Assume now that Cambridge did not pay on July 9, as indicated above. At the end of August, Ceradyne added one month's interest to Cambridge's account for the overdue receivable. Ceradyne charges 24% per year on overdue accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Cred Aug. 31 SHOW LIST OF ACCOUNTS LINK TO TEXT on attempts: 0 of 3 used SAVE FOR LATER Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER SUBMIT