Question

July 1 Purchased 50 suitcases on account for $54 each from Trunk Manufacturers, terms n/30, FOB destination 2 The correct company paid $140 freight on the July 1 purchase. 4 Received $270 credit for five suitcases returned to Trunk Manufacturers because they were damaged. 10 Sold 45 suitcases that cost $54 each to Satchel World for $55 each on account 12 Issued a $275 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory 15 Purchased 60 additional suitcases from Trunk Manufacturers for $51.50 each, terms /30, FOB shipping point. 18 Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers. 21 Sold 54 suitcases that cost $54 each to Fly-ByNight for $55 each on account. 23 Gave Fly-By-Night a $110 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers. 30 Paid Trunk Manufacturers for the July 1 purchase. 31 Received balance owing from Satchel World Record the July transactions for Concord Warehouse. Assume that Concord uses the earnings approach. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Debit Credit Account Titles and Explanation Merchandise Inventory July 1 v 2700 Accounts Payable 2700 (Purchase on account.) July 2 V no entry e A 40) ENG 11:51 PM 2020-06-29 U

Answer 1

Journal Entries for the following transactions are recorded along with the narration.

Journal Entries for the month July

Date	Particulars	Debit Amount	Credit Amount
July1	Merchandise Inventory A/c Dr.	2,700
	To Accounts Payable		2,700
	(Being purchases recorded)
July 02	Freight Charges A/c Dr.	$140
	To Cash a/c		$140
	(Being freight charges paid )
July 04	Accounts Payable A/c Dr.	270
	To Merchandise Inventory : Purchase Returns		270
July 10	Accounts Receivable A/c Dr. (45 units * $55 per unit)	2475
	To Revenues A/c (45 units * $ 1 per unit)		45
	To Merchandise Inventory (45 units $ 54 per unit)		2,430
	(Being sales and cost of goods sold recorded.)
July 12	Merchandise Inventory :Sales Returns A/c Dr.	275
	To Accounts Receivable		275
	(Sales returns recorded)
July 15	Merchandise Inventory A/c Dr.	3090
	To Accounts Payable		3090
	(Being purchases recorded)
July 18	Freight Charges A/c Dr.	150
	To Cash A/c		150
	(Frieght Charges paid)
July 21	Accounts Receivables A/c Dr. (54 units * $55 per unit)	2970
	To Revenue A/c (54 units 8 $1 per unit)		54
	To Merchandise Inventory (54 units * $54 per unit		2916
	(Sales made)
July 23	Merchandise Inventory : Sales Return A/c Dr.	110
	To Accounts Reecivables		110
	(Sales returns recorded)
July 30	Accounts Payable A/c Dr.	2,430
	To Cash A/c		2,430
	(Paid to trunk manufacturers fter purchase returns)
July 31	Cash A/c Dr.	2200
	To Accounts Receivables		2,200
	(Payment received from Satchel World)