Reference no: EM132758164

Mark's Music is a store that buys and sells musical instruments and uses a perpetual inventory system. Transactions for the business are shown below:

Nov. 2 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $800 each, terms 1/10, n/60.

4 Made a cash sale of two keyboards for a total invoice price of $2,400. The cost of each keyboard was $750.

5 Received a credit from Western Acoustic Inc. for the return of an acoustic guitar which was defective. The original invoice price was $400 and the guitar had been purchased on account.

7 One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument. Purchased store supplies from a stationery store. Paid $200 for supplies.

10 Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $3,200. Terms are 1/10, n/60. The trumpet had cost Mark's Music $1,420.

10 Made a payment on account for the amount owing to Fender Supply Limited for the purchase of Nov. 2. Purchased two saxophones from Yamaha Canada Inc. on account. The invoice price was $2,200 for each saxophone. Terms are 1/10, n/30.

16 Returned to Yamaha Canada Inc. one of the saxophones purchased on Nov. 13, as it was the wrong model. Received a credit from Yamaha for the full purchase price.

20 Received a cheque for the appropriate amount from Toronto Regional Band for the purchase of Nov. 10. 2 Paid balance owing to Yamaha Canada Inc.

Problem 1: Prepare the journal entries to record the Mark's Music transactions.