Problem B Algo Record transactions and prepare a partial income statement using a perpetual inventory system LO
At the beginning of June, Circuit Country has a balance in inventory of $ The following transactions occur during the month of June.
June Purchase radios on account from Radio World for $ terms
June Pay cash for freight charges related to the June purchase from Radio World, $
June Return defective radios to Radio World and receive credit, $
June Pay Radio World in full.
June Sell radios to customers on account, $ that had a cost of $
June Receive payment on account from customers, $
June Purchase radios on account from Sound Unlimited for $ terms
June Sell radios to customers for cash, $ that had a cost of $
June Return damaged radios to Sound Unlimited and receive credit of $
June Pay Sound Unlimited in full.
Required:
Assuming that Circuit Country uses a perpetual inventory system, record the transactions.
Prepare the top section of the multiplestep income statement through gross profit for the month of June.
