Reference no: EM133176434

Question - During its first year of operations, Tron Auto Dealership {TAD} bought vehicles from a manufacturer on account at a cost of $613,000. TAD returned $157,000 of these vehicles to the manufacturer for credit on its account. TAD then sold $385,000 of the remaining vehicles at a cash selling price of $600,000. TAD's customers rarely return vehicles, so TAD records sales returns only as they occur. One customer did return a vehicle to TAD, which had been sold to the customer for $142,000. The vehicle was in perfect condition, so it was put back into TAD's inventory at TAD's cost of $81,000. Prepare journal entries to record these transactions, assuming TAD uses a perpetual inventory system.