Sundance Systems recorded the following transactions in July: - July 5: Purchased 58 LCD televisions on account from Red River Supplies at $3,400 each, with terms 2/10, n/30. - July 8: Returned two defective televisions to Red River. - July 13: Paid the full amount due to Red River Supplies. - July 28: Sold the remaining 56 televisions purchased on July 5 for $3,900 each on account. Assuming the company uses a perpetual inventory system, record Sundance Systems' transactions.

To record the transactions for Sundance Systems, we need to make journal entries that reflect the purchases, returns, and sales. We'll also take into account the payment terms and apply any discounts accordingly.

1. July 5: Purchased 58 LCD televisions on account from Red River Supplies at $3,400 each - Debit Inventory for the total purchase amount (58 TVs * $3,400 each = $197,200) - Credit Accounts Payable for the same amount (since the purchase is on account)

Journal entry: ``` July 5 Inventory 197,200 Accounts Payable 197,200 ```

2. July 8: Returned two defective televisions to Red River - Credit Inventory for the cost of two televisions (2 TVs * $3,400 each = $6,800) - Debit Accounts Payable to reduce the liability (since the TVs were returned)

Journal entry: ``` July 8 Accounts Payable 6,800 Inventory 6,800 ```

3. July 13: Paid the full amount due to Red River Supplies - Calculate the discount: Original amount - returns = eligible amount for discount (197,200 - 6,800 = 190,400), then apply the 2% discount (190,400 * 2% = $3,808 discount) - Debit Accounts Payable for the full amount of the televisions after the returns - Credit Cash for the amount paid after the discount - Credit Inventory for the amount of discount (since it reduces the cost of the inventory)

Journal entry: ``` July 13 Accounts Payable 190,400 Inventory 3,808 Cash 186,592 ```

4. July 28: Sold the remaining 56 televisions purchased on July 5 for $3,900 each on account - Debit Accounts Receivable for the total sales amount (56 TVs * $3,900 each = $218,400) - Credit Sales Revenue for the same amount (since it is a sale on account) - Debit Cost of Goods Sold (COGS) for the cost of the televisions sold (56 TVs * $3,400 each = $190,400) - Credit Inventory for the amount of COGS (to reduce the inventory for the items sold)

Journal entry: ``` July 28 Accounts Receivable 218,400 Sales Revenue 218,400

Cost of Goods Sold 190,400 Inventory 190,400 ```

These are the journal entries that would be recorded under the perpetual inventory system for Sundance Systems' July's transactions.