Gamegirl Inc., has the following transactions during August.
August 6 Sold 64 handheld game devices for $170 each to DS Unlimited on account, terms 1/10, net 60. The cost of the 64 game devices sold, was $150 each.
August 10 DS Unlimited returned four game devices purchased on 6th August since they were defective.
August 14 Received full amount due from DS Unlimited.
Required:
1. Prepare the transactions for GameGirl, Inc., assuming the company uses a perpetual inventory system.

Explanation:

1.August 6.

Account Receivable-Ds Unlimited  (64*170)        Dr.$10,880

Sales Revenue                                                       Cr.$10,880

Cost of Goods Sold  ($150*64)                Dr.$9,600

Inventory                                                    Cr.$9,600

2.August 10.

Inventory/Sales Revenue         (4*170)           Dr.$680

Account Receivable-Ds Unlimited                Cr.$680

3. August 14.

  Cash                     (10,880-680)*99%         Dr.$10,098

  Cash Discount                                            Dr.$     102

   Accounts Receivable                                Cr.$ 10,200      

Note:

The gross method of discount is used which means at time of receipt, discount impact is taken. In this question 1/10 means 1% discount allowed if payment made within 10 days of sale. This means DS unlimited qualifies for cash discount as payment is received on 14 August

answer is a

explanation: