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During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer on account at a cost of $619,000. TAD returned $163,000 of these vehicles to the manufacturer for credit on its account. TAD then sold $391,000 of the remaining vehicles at a cash selling price of $696,000. 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 $148,000. The vehicle was in perfect condition, so it was put back into TAD’s inventory at TAD’s cost of $87,000. Prepare journal entries to record these transactions, assuming TAD uses a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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During its first year of operations, Tron Auto Dealership (TAD) bought vehicles from a manufacturer...
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