On January 1,2006,the CD Warehouse Began Operations with a Cash

Essay

On January 1,2006,the CD Warehouse began operations with a cash balance of $67,328.During the year,the company purchased 14,500 CDs on credit at a unit cost of $12.Payment was made soon enough to obtain a 2% purchase discount.During the year the company sold 3,200 CDs at a unit sales price of $25.1,000 of CD sales were sold to customers who paid early to get the 3% discount.
Assuming a perpetual inventory system is used,show the journal entries for these transactions and the T-accounts for both cash and inventory.