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Question $4$ of $7$

$\frac{5}{10}$

Carla Vista Company commenced operations on July $1.$ Carla Vista Company uses a periodic inventory system. During July, Carla Vista Company was involved in the following transactions and events:

July $2$ Purchased $$14,200$ of merchandise from Suppliers Inc. on account, terms $\frac{2}{10},\frac{n}{30},$ FOB shipping point.

$3$ Returned $$1,200$ of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers.

$4$ Paid $$580$ of freight costs on July $2$ shipment.

$8$ Sold merchandise for $$3,000$ cash.

$11$ Paid Suppliers inc. the full amount owing.

$15$ Sold merchandise for $$6,500$ on account, $\frac{1}{10},\frac{}{30},$ FOB shipping point

$25$ Received full payment for the merchandise sold on July $15.$

$31$ Carla Vista did a physical count and determined there was $$10,400$ of inventory on hand.

$($a$)$

Your answer is correct.

Record the transactions in Carla Vista Company's books. $($Credit account titles are outomatically 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. Record joumal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

July $2$

July $3$

Account Titles and Explanation

Purchases

Accounts Payable

$($Purchase on account$)$

Accounts Payable

Purchase Returns and Allowances

$($To record purchase return.$)$

Debit

$14,200$

Credit

$14,200$

$1$

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