Sundance systems has the following transactions during July. July 5- Purchases 58 LCD televisions on account from Red River Supplies for $3,400 each, terms 2/10. n/30.
July 8- Returns to Red RIver two televisions that had detective sound.
July 13- Pays the full amount due to Red River.
July 28- Sells remaining 56 televisions purchased on July 5 fpr $3,900 each on account. Record the transactions of Sundance systems, assuming the company uses a perpetual inventory system.

Please see below for answers

Explanation:

Journal to record Purchase of goods.

Date                General Journal                  Debit      Credit

5TH July  Inventory ( 58 x 3400)     $197, 200

               Accounts Payable                                     $197,200

journal to record goods returned

Date                General Journal                  Debit           Credit

8TH July   Accounts Payable (2 x 3400)     $6,800

               inventory                                                        $  6,800

journal to record payment made to supplier

Date                General Journal                              Debit           Credit

13TH July Accounts Payable (197,200-6,800)     $190,400

               inventory  ( 190,400 x2%)                                    $3808

              Cash( 190,400 - 3,808)                                      $186,592

From the question, the conditions for payment states 2/10 and n/30 meaning that the company will get 2% discount if they pay for products in 10 days of payment. the company paid on 13th and therefore will get a discount which is $3,808.

journal to record sale of goods

Date                General Journal                              Debit           Credit

28TH July Accounts receivable(56x 3900)     $218,400

                  Sales revenue                                               $218,400  

Journal to record cost of good sold

Date                General Journal                Debit           Credit

28TH July  cost of good sold               $186,592

               inventory                                                         $186,592      

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.